Option 1 is wrong

You received no credit for this question in the previous attempt. View previous attempt 9 During August, Boxer Company sells $348,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $11,000 before adjustment Customers returned merchandise for warranty repairs during the month that used $7,600 in parts for repairs. The entry to record the estimated warranty expense for the month is: Multiple Choice Debit Estimated Warranty Liability $7,600; credit Warranty Expense $7,600. Debit Warranty Expense $14.000; credit Estimated Warranty Liability $14,000. Debit Estimated Warranty Liability $17,400, credit Warranty Expense $17,400. O Debit Warranty Expense $6,400; credit Estimated Warranty Liability $6,400. a O Debit Warranty Expense $17,400; credit Estimated Warranty Liability $17,400