Question $10$

$2\mathrm{.}5pts$

During December, Vixen Company sells $$869,000$ in merchandise that has a one$-$year warranty. Warranty expense is estimated at $3\%$ of sales. On January $5$ of the following year, the merchandise requires repairs that are completed the same day. The repairs cost $$15,900$ for materials taken from parts inventory. The entry to record the repairs that occur on January $5$ is: $q,$

Debit Estimated Warranty Liability $$10,170$; credit Parts Inventory $$10,170.$

Debit Estimated Warranty Liability $$26,070$; credit Warranty Expense $$26,070.$

Debit Warranty Expense $$15,900$; credit Estimated Warranty Liability $$15,900.$

Debit Estimated Warranty Liability $$15,900$; credit Parts Inventory $$15,900.$

Debit Warranty Expense $$10,170$; credit Estimated Warranty Liability $$10,170.$