A company estimates that warranty expense will be 2% of sales. The company's sales for the current period are $176,000. The current period's entry to record the warranty expense is: Multiple Choice Debit Esated Warranty Liability $5.390; credit Warranty Expense $5,380. Debit Warranty Expense $3,520; credit Estimated Warranty Liability $3,520. No entry is recorded until the items are returned for warranty repairs. Debit Warranty Expense $3,520; credit Sales $3,520. Debit Estimated Warranty Liability $3,520, credit Cash $3,520.