During December, Shelton Company sells $852,000 in merchandise that has a one-year warranty. Warranty expense is estimated at 3% of sales. On January 5 of the following year, the merchandise requires repairs that are completed the same day. The repairs cost $14,200 for materials taken from parts inventory. The entry to record the repairs that occur on January 5 is: Multiple Choice Debit Estimated Warranty Liability $14,200; credit Parts Inventory $14,200. Debit Warranty Expense $11,360; credit Estimated Warranty Liability $11,360. Debit Estimated Warranty Liability $25,560; credit Warranty Expense $25,560. Debit Estimated Warranty Liability $11,360; credit Parts Inventory $11,360. bit Warranty Expense $14,200; credit Estimated Warranty Liability $14,200.

uring December, Shelton Company sells $852.000 in merchandise that has a one-year warranty. Warranty expense is estimated at 3% of sales. On anuary 5 of the following yeac, the merchandise requires repairs that are completed the same day. The repairs cost $14,200 for materials taken from arts inventory, The entry to record the repairs that occur on January 5 is: Multiple Choice Debit Estimated Warranty Uabity $14,200; credit Parts inventory $14,200. Debit Warranty Expense $14360; credt Entimated Warranty Llabity $11360. Debit Estimated Warranty Labaty 525,560 , credit Warranty Expense 575,560 Debit Estimsted Warranty Labaty $11360, credt Parts imentory $11,360 Debit Warranty Expense $14,200, credit Estimated Warranty Liabity $4,200