During June, Vixen Company sells $850,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 3% of the selling price. Customers returned $14,000 of merchandise for warranty replacement during the month. The entry to record the estimated warranty provision at the end of the month is:

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

OR

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