During August, Boxer Company sold $362,000 in merchandise that has a one-year warranty. Based on past experience, warranty expenses are estimated to be about 5% of total sales revenue. Boxer used $8,800 in parts for warranty repairs on merchandise that customers returned. Which of the following statements is correct about the estimated warranty expense for the month? O No recording is needed because the warranty expense is estimated. O Boxer's estimated warranty Expense increased by $18,100 this month. Boxer's estimated warranty liabilities had no change this month. O Boxer's estimated warranty expense decreased by $8,800 this month.

During August, Boxer Company sold $362,000 in merchan'dise that has a one-year warranty. Based on past experience, warranty expenses are estimated to be about 5% of total sales revenue. Boxer used $8.800 in parts for warranty repalrs on merchandise that customers returned. Which of the following statements is correct about the estimated warranty expense for the month? No recording is needed because the warranty expense is estinated. Bovers estimated warranty Expense increased by $18,100 this month. Boxer's estimated warranty liabilities had no change this month. Bexer's estimated warranty expense decreased by $8,800 this month