Fenton Enterprises sells refrigerators for $1,000 with a 90-day warranty against defects. Senior management indicates that 12% of the refrigerators will have some defect during the warranty period and that the necessary repairs and adjustments will cost 5% of the original selling price per defective unit. Sales for the first quarter were $350,000. Exactly 10 units were reported defective and repaired in during the quarter. What is the March 31 journal entry to record the estimated remaining warranty liability for units sold during the first quarter? Note: March 31 is the end of the reporting period and Brandmart has not yet recorded a journal entry related to Warranty expense for this quarter. Select one: Estimated Warranty Liability for Product Warranty $500 Product Warranty Expense $500 $2,100 Product Warranty Expense Estimated Liability for Product Warranty $2,100 $1,600 Product Warranty Expense Estimated Liability for Product Warranty $1,600 d. $500 Product Warranty Expense Estimated Liability for Product Warranty $500