During 2019, Daniel Company sold 1,000 machines with a one-year warranty. The company estimated that 8% of the machines will be defective and the warranty repair cost is $60 per machine. In 2019, the company honors warranty contracts for 12 machines. The adjusting entry to accrue the estimated warranty costs is: O Debit Warranty Expense $720 Credit Warranty Liability $720 O Debit Warranty Liability $720 Repair Parts $720 Debit Warranty Expense $4,800 Credit Warranty Liability $4,800 Debit Warranty Liability $4,800 Repair Parts $4,800 O None of the above The entry to record the honoring of warranty contracts in 2019 will include: Credit Cash $720 O Debit Repair Parts $4,800 Debit Warranty Liability $720 Debit Warranty Expense $4,800 O None of the above If the entry to record the honoring of warranty contracts in January 2020 is amounted for $420 then the honored warranty contracts are: O 25,200 machines O 35 machines O 33.6 machines O 7 machines