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Buffalo, Inc. reported sales revenue for 2017 of $907,000.The products were sold with a nine-month warranty. Members of Buffalo's management estimate that the cost of

Buffalo, Inc. reported sales revenue for 2017 of $907,000.The products were sold with a nine-month warranty. Members of Buffalo's management estimate that the cost of the warranty will be equal to 7% of sales revenue. Which of the following will be included in the entry to record the actual amounts paid out as a result of warranty claims?

a) a credit to Estimated Warranty Payable for $63,490

b) a debit to Estimated Warranty Payable for $63,490

c) a debit to Warranty Expense for the actual amount of payments

d) a debit to Estimated Warranty Payable for the actual amount of payments

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