Bespoke,Inc

Bespoke,Inc.offers warranties on all their bikes.They estimate warranty expense at 3.5% of sales.At the beginning of 2017,the Estimated Warranty Payable account had a credit balance of $1,900.During the year,Bespoke had $296,000 in sales and had to pay out $5,900 in warranty payments.At the end of the year,what is the closing balance in the Estimated Warranty Payable accounts?

A) $6,360
B) $7,800
C) $8,460
D) $10,360