During August, Boxer Company sells $353,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a credit balance of $11,500 before adjustment. Customers returned merchandise for warranty repairs during the month that used $8,100 in parts for repairs. The entry to record the estimated warranty expense for the month is: Multiple Choice Debit Warranty Expense $10,720; credit Estimated Warranty Liability $10,720. Debit Estimated Warranty Liability $14,120; credit Warranty Expense $14,120. Debit Estimated Warranty Liability $8,100; credit Warranty Expense $8,100. Debit Warranty Expense $2,620; credit Estimated Warranty Liability $2,620