Diamond Electronics sells previously owned electronics. Each product carries a one-year warranty against defects. Suppose that product sales for the entire month of December are $80,000. The company expects future warranty costs to be 6% of sales. On December 31, Year 1, the company will record a:

debit to Warranty Expense for $4,800

debit to Warranty Liability for $4,800

credit to Warranty Expense for $80,000

credit to Warranty Liability for $80,000