In 2019, DELL Company sells 3,000 units of its product for $500 each. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $50 per unit.

Estimated warranty costs on December 31, 2019, is: *

$4,500

$3,000

$1,500

$22,500

None of the above

Journal entry for estimated warranty costs will include: *

Debit Warranty Expense and Credit Repair Parts,

Debit Warranty Liability and Credit Repair Parts

Debit Warranty Expense and Credit Warranty Liability

Credit Warranty Liability and Debit Repair Parts

None of the above

The entry to record the units repaired during 2019 is: *

Debit Warranty Expense, Credit Warranty Liability

Debit Warranty Liability, Credit Repair Parts

Credit Repair Parts, Debit Warranty Expense

Credit Warranty Liability, Debit Repair Parts

None of the above