3 A company estimates that warranty expense will be 5% of sales. The company's sales for the curr period are $758,000. The current period's entry to record the warranty expense is: a. No entry is recorded until the items are returned for warranty repairs. b. Debit Estimated Warranty Liability $37,900; credit Warranty Expense $37.900. C. Debit Warranty Expense $37,900; credit Estimated Warranty Liability $37,900. d. Debit Estimated Warranty Liability $37,900; credit Sales Returns & Allowances $37,900. Debit Warranty Expense $37,900; credit Sales Returns & Allowances $37,900