ing Company began operations on May 1, 2016, and experienced the following events during the year:

1.	Purchased $160,000 of merchandise inventory for cash.
2.	Sold all the merchandise for $240,000 cash and guaranteed the merchandise sold to be free from defects for one year following the date of sale.
3.	Paid $50,000 cash for salaries expense.
4.	Estimated future warranty liability of $2,400 (1% of sales).
5.	Paid $1,600 cash to repair defective merchandise returned by a customer.

What of the following is the correct adjusting general journal entry to record the estimated future warranty liability?

	Debit	Credit
Warranty Expense	2,400
Sales Revenue		2,400

	Debit	Credit
Warranty Expense	2,400
Cash		2,400

	Debit	Credit
Warranty Expense	2,400
Warranties Payable		2,400

	Debit	Credit
Warranties Payable	2,400
Warranty Expense		2,400