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Evergreen Roofing had cash sales for the month totaling $40,000. Evergreen offers a 1-year warranty on its roofing services. If Evergreen estimates warranty claims will

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Evergreen Roofing had cash sales for the month totaling $40,000. Evergreen offers a 1-year warranty on its roofing services. If Evergreen estimates warranty claims will equal 5% of sales, the journal entry to record the estimated warranty expense for the month is: debit estimated warranty expense $2,000; credit warranty payable $2,000 debit warranty expense $2,000; credit Cash $2,000. debit warranty expense $2,000; credit Sales Revenue $2,000. debit warranty expense $2,000; credit Estimated Warranty Payable $2,000

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