The auditor for Universal Tools, Inc. discovered in 2023 that the warranty liability account showed a $25,000 debit balance. She investigated and discovered that the 2% estimate based on sales for warranty expense was recorded and understated, and it was more likely 3.5%. Sales for 2023 were $5,750,000. What is the appropriate journal entry as a result of this discovery? Question content area bottom Part 1 A. Warranty Liability 86,250 Warranty Expense 86,250 B. Warranty Liability 25,000 Warranty Expense 25,000 C. Warranty Expense 86,250 Warranty Liability 86,250 D. Warranty Expense 201,250 Warranty Liability 201,250