A company sold $12,000 worth of bicycle with an extended warranty. It estimates that 2% of these sales will results in warranty work. The current period's entry to record the warranty expense is: Debit Sales Allowances $240; credit Estimated Warranty Liability $240. Debit warranty expense $240; credit Estimated Warranty Liability $240. Debit Period warranties $240; credit Warranty Expense $240. Debit Estimated Warranty Liability $240; credit cash $240