A company sold exist12,000 worth of bicycles with an extended warranty. It estimates that 2% of these sales will result in warranty work. The current period's entry to record the warranty expense is: Debit Estimated Warranty Liability exist240, credit Cash exist240. Debit Sales Allowances exist240 credit Cash exist240. Debit Warranty Expense exist240, credit Cash exist240. Debit Prepaid Warranties exist240, credit Warranty Expense exist240. Debit Warranty Expense exist240, credit Estimated Warranty Liability exist240