Masterpiece Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at

55%

of sales revenue. In 2019, the company had

$ 596 comma 000$596,000

in sales. In the same year, Masterpiece Sales replaced defective goods with goods that had a cost of

$ 16 comma 000$16,000.

Which of the following is the entry needed to record the replacement of the defective goods?

A.

Warranty Expense	29 comma 80029,800
Merchandise Inventory		29 comma 80029,800

B.

Warranty Expense	16 comma 00016,000
Estimated Warranty Payable		16 comma 00016,000

C.

Warranty Expense	29 comma 80029,800
Estimated Warranty Payable		29 comma 80029,800

D.

Estimated Warranty Payable	16 comma 00016,000
Merchandise Inventory		16 comma 00016,000