please help, i am completely stumped!

Exilien offers a 3-year warranty on its products. Exilien sold $12,000,000 of products this year and estimates that warranty work will result in costs equal to 3% of sales. If the estimated warranty liability account has a credit balance prior to the year-end adjusting entry of $12,000, how much warranty expense must be recognized? $240,000 $360,000 $120,000 $480,000 The cash components of a bond include: Repayment of the par value at maturity. None of the above. Annual interest payments. Both A & B