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, it paid out $8,500 of warranty payments. Which of the following is the entry needed to record the estimated warranty expense?

Warranty Expense	17,850
Sales Revenue		17,850

Warranty Expense	17,850
Estimated Warranty Payable		17,850

Warranty Expense	8,500
Estimated Warranty Payable		8,500

Estimated Warranty Payable	8,500
Cash		8,500