29 A company sold $12,000 worth of bicycles with an extended warranty. The company estimates that 2% of these sales will result in warranty work. The current period's entry to record warranty expense is Prepaid Warranties Warranty Expense 240 240 Warranty Expense 240 Estimated Warranty Liability 240 Warranty Expense 240 Cash 240 mated Warranty Liability 240 Cash 240 Returns & Allowances 240 Estimated Warranty Liability 240