A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $199,000. The current period's entry to record the warranty expense is: Multiple Choice Debit Warranty Expense $7,960 credit Sales $7,960. No entry is recorded until the items are returned for warranty repairs. Debit Estimated Warranty Liability $7.960 credit Cash $7,960. Debit Warranty Expense $7.960 credit Estimated Warranty Liability $7,960. Debit Estimated Warranty Liability $7,960 credit Warranty Expense $9,000.