In August, Williams Company sells $352,000 of inventory that has a one-year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $11,400 before adjustment. Customers returned inventory for warranty repairs during the month that used $8,000 in parts for repairs. The entry to record the estimated warranty expense for the month is:

• Debit Estimated Warranty Liability $17,600; credit Warranty Expense $17,600.

• Debit Warranty Expense $14,200; credit Estimated Warranty Liability $14,200.

• Debit Estimated Warranty Liability $8,000; credit Warranty Expense $8,000.

• Debit Warranty Expense $17,600; credit Estimated Warranty Liability $17,600.

• Debit Warranty Expense $6,200; credit Estimated Warranty Liability $6,200.