1 points QUESTION 3 Prospect Company began operations on May 1, 2017, and experienced the following events during the year: 1. 1 Purchased $80,000 of merchandise inventory for cash 2 Sold all the ise for $120,000 cash and gu r following the date of sale the merchandise sold to be free from defects for one year | Estimated future warrant ability f $1,200 (1% of sales 5 Paid $800 cash to repair defective merchandise returned by a customer What of the following is the correct general journal entry to record the estimated future warranty liability? 1,200 1,200 1,200 1,200 Warranty Expense Sales Revenue Cash Warranties Payable Warranty Expense 1,200 1,200 1,200 Warranty Expense Warranties Payable b. 1 points