During 2019, Daniel Company sold 1,000 machines with a one-year warranty. The company estimated that 4% of the machines will be defective and the warranty repair cost is $60 per machine. In 2019, the company honors warranty contracts for 15 machines. The adjusting entry to accrue the estimated warranty costs is: * O Debit Warranty Expense $8,000 Credit Warranty Liability $8,000 Debit Warranty Expense $2,400 Credit Warranty Liability $2,400 Debit Warranty Liability $8,000 Repair Parts $8,000 Debit Warranty Liability $2,400 Repair Parts $2,400 None of the above The entry to record the honoring of warranty contracts in 2019 will include: * O Debit Warranty Liability $900 O Credit Cash $900 Debit Repair Parts $480 O Debit Warranty Expense $900 O None of the above If the entry to record the honoring of warranty contracts in January 2020 is amounted for $240 then the honored warranty contracts are: O 14,400 machines O 240 machines 9.6 machines O 4 machines O None of the above