Bespoke,Inc

Bespoke,Inc.offers warranties on all their bikes.They estimate warranty expense at 4.5% of sales.At the beginning of 2017,the Estimated Warranty Payable account had a credit balance of $1,200.During the year,Bespoke had $305,000 in sales and had to pay out $5,700 in warranty payments.At the end of the year,what is the closing balance in the Estimated Warranty Payable accounts?

A) $9,225
B) $6,900
C) $12,525
D) $13,725