Cod Inc. sells water bottles for $20/each. Historically, 1% of the bottles that Cod sells are returned and need to be replaced. The cost to Cod of each water bottle is $8.

In September 2020, Cod Inc. sells 1,000 water bottles. What is the journal entry to record September Warranty Expense?

DR: [ Select ] ["Inventory", "Warranty Payable", "Warranty Expense", ""] [ Select ] ["10", "200", "80"]

CR: [ Select ] ["Warranty Expense", "Warranty Payable", "Inventory"] [amount]