17. Help please

Marigold, Inc. sells 1250 units of a product that has a one-year warranty on parts. The average cost of honoring one warranty contract is $50. During the year 70 contracts are honored at a total cost of $3500. It is estimated that 140 contracts will be honored in the following year. The adjusting entry at the end of the current year will include a credit of Warranty Liability $7000. credit of Warranty Liability $10500. debit of Warranty Expense $3500. debit of Warranty Expense $10500