Accounting 1A. A company estimates that warranty expense will be 2% of sales. The company's sales for the period are $176,000. The current period's entry to record the warranty expense is:

A company estimates that warranty expense will be 2% of sales. The company's sales for the current period are $176,000. The current period's entry to record the warranty expense is: Multiple Choice Debit Warranty Expense $3,520 credit Sales $3,520 Debit Warranty Expense $3,520 credit Estimated Warranty Liability $3,520. Debit Estimated Warranty Liability $3,520 credit Warranty Expense $5,380. Debit Estimated Warranty Llobility $3,520 credit Cash $3,520 No entry is recorded until the items are returned for warranty repairs