Question: A company sold $ 1 2 , 0 0 0 worth of blicycles with an extended warranty. The period's entry to record the warranty expense

A company sold $12,000 worth of blicycles with an extended warranty. The period's entry to record the warranty expense is:
Debit Warranty Expense $240; credit Cash $240.
Debit Prepaid Warranties $240- credit Warranty Expense $240.
Debit Estimated Warranty Liability $240; credit Cash $240.
Debit Sales Allowances $240; credit Estimated Warranty Liability $240.
Debit Warranty Expense $240 : credit Estimated Warranty Liability $240.
A company sold $ 1 2 , 0 0 0 worth of blicycles

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