During August, Boxer Company sells $356,000 in merchandise that has a one-year warranty. Warranty expense is estimated at 5% of sales. The warranty liability account has a credit balance of $12,800 before adjustment. The entry to record the estimated warranty expense for the month is:

Multiple Choice

Debit Warranty Expense $14,400; credit Estimated Warranty Liability $14,400.

Debit Warranty Expense $17,800; credit Estimated Warranty Liability $17,800.

Debit Estimated Warranty Liability $17,800; credit Warranty Expense $17,800.

Debit Warranty Expense $5,000; credit Estimated Warranty Liability $5,000.

Debit Estimated Warranty Liability $9,400; credit Warranty Expense $9,400.