Jumbo Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 3% of sales revenue. In 2013, the company had $595,000 of sales. In the same year, Jumbo paid out $8,500 of warranty payments. Which of the following is the entry needed to record the disbursement of warranty payments?

Answers:

Warranty Expense	8,500
Estimated Warranty Payable		8,500

Warranty Expense	17,850
Sales Revenue		17,850

Warranty Expense	17,850
Estimated Warranty Payable		17,850

Estimated Warranty Payable	8,500
Cash		8,500