A TV manufacturer offers warranties on its new TV sales. During December 2004, TV sales totaled $205,000. Past experience shows that warranty expense averages about 3% of the annual sales. What adjusting journal entry should be recorded on December 31, 2004 to account for the warranty expense? Debit Warranty Expense for $6,150; Credit Warranty Liability for $6,150 Debit Warranty Liability for $6,150; Credit Warranty Expense for $6,150 Debit Warranty Expense for $6,150; Credit Inventory Reserve for $6,150 Debit Warranty Expense for $6,150; Credit Accounts Payable for $6,150 No entry needed on December 31, 2004