During December, Vixen Company sells $$850,000$ in merchandise that has a one$-$year warranty. Warranty expense is estimated at $3\%$ of sales. On January $5$ of the following year, the merchandise requires repairs that are completed the same day. The repairs cost $$14,000$ for materials taken from parts inventory. The entry to record the repairs that occur on January $5$ is:

Multiple Choice

Debit Estimated Warranty Liability $$11,500$; credit Parts Inventory $$11,500.$

Debit Warranty Expense $$14,000$; credit Estimated Warranty Liability $$14,000.$

Debit Estimated Warranty Liability $$25,500$; credit Warranty Expense $$25,500.$

Debit Estimated Warranty Liability $$14,000$; credit Parts Inventory $$14,000.$

Debit Warranty Expense $$11,500$; credit Estimated Warranty Liability $$11,500.$