Fast Bikes Company offers warranties on all their bikes. They estimate warranty expense at 3.5% of sales. At the beginning of 2018, the Estimated Warranty Payable account had a credit balance of $1900. During the year, Fast Bikes had $296,000 in sales and had to pay out $5900 in warranty payments. At the end of the year, what is the ending balance in the Estimated Warranty Payable accounts?
A) $6360
B) $7800
C) $8460
D) $10,360
A) $6360
Business
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