During June Vixen Fur Company sells $850.000 in merchandise that as a one year warranty Experience shows that during expenses average about 3% of the selling price. Customers returned $14,000 of for merchandise for warranty replacement during the month. The entry to settle the customer warranties is: Debit warranty Expense$11. 500; credit Estimated warranty Liability $11, 500. Debit Estimated warranty Liability $25, 500; credit Warranty Expense $25, 500. Debit Warranty Expense $14,000; credit Estimated warranty Liability $14,000. Debit Estimated Warranty Liability $11, 500; credit Merchandise Inventory $11.500. Debit Estimated Warranty Liabilty $14,000; credit Merchandise Inventory $14,000