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2. Ringo Company sold 2,000 televisions on June 1, 2017 at a total price of $2,000,000, with a warranty guarantee that they were free of defects. The cost of the televisions is $1,200,000. The term of this assurance warranty is 3 years with an estimated cost of $100,000. In addition Ringo sold extended warranties related to 600 televisions for 2 years beyond the 3year period for $40,000. On December 12, 2017, Ringo incurred labor costs of $5,000 and part costs of $12,000 related to the assurance warranties. Ringo prepares financial statements on December 31, 2017. It estimates that the future assurance warranty costs will total $50,000 at December 31, 2017. Which of the following entries is correct?

On June 1, 2017 Ringo will make a credit to Sales Revenue of $2,040,000.

On December 12, 2017 Ringo will make a debit to Warranty Expense of $17,000.

On December 31, 2017 Ringo will make a debit to Warranty Expense of $67,000.

On December 31, 2017 Ringo will make a debit to Warranty Expense of $50,000.