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 estimated warranty liability at the end of December is: Multiple Choice Debit Estimated Warranty Liability $14,000; credit Warranty Expense $14,000. Debit Warranty Expense $25,500; credit Estimated Warranty Liability $25,500. Debit Estimated Warranty Liability $11,500; credit Warranty Expense $11,500. Debit Warranty Expense $11,500; credit Estimated Warranty Liability $11,500. Debit Warranty Expense $14,000; credit Estimated Warranty Liability $14,000.