Larry Company estimates its annual warranty expense at $2\%$ of annual net sales. The following data is relative to the calendar year $20$X$2$: i$)$ net sales $-$ $$1\mathrm{.}5$ million, ii$)$ warranty liability account at December $31,20$X$2-$ $$10,000$ debit before adjustment. Which one of the following entries should be made to record the $20$X$2$ estimated warranty expense?

Question $1$ options:

warranty expense $$30,000$

warranty liability $$30,000$

warranty expense $$30,000$

retained earnings $$5000$

warranty liability $$25,000$

warranty expense $$20,000$

warranty liability $$20,000$

warranty expense $$25,000$

retained earnings $$5,000$

warranty liability $$30,000$