Patriot Paddleboards sells a paddleboard model that carries a one-year warranty on all included accessories. Past experience indicates that 15% of those sold will have defective accessories within a year and that average repair cost is $20 per paddleboard. If 1,000 were sold this year and 50 have already been repaired under warranty, the entry to record warranty expense for the year would include a debit to:

Choices:

Warranty Expense of $2,000

Warranty Liability of $2,000

Warranty Liability of $3,000

Warranty Expense of $3,000