Current Attempt in Progress Swifty Company sold $10500 worth of luggage with a one-year warranty. The company estimates that 2% of the sales will result in a warranty payout. Swifty Company should O recognize warranty expense at the time of sale. O recognize warranty expense at the time warranty work is performed. O recognize warranty expense and warranty liability at the time of sale. recognize warranty expense at the time warranty work is performed and warranty liability at the time of sale