TB MC Qu. 11-142 During August, Boxer... During August, Boxer Company sells $350,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a credit balance of $11,200 before adjustment. Customers returned merchandise for warranty repairs during the month that used $7,800 in parts for repairs. The entry to record the estimated warranty expense for the month is: Multiple Choice Debit Warranty Expense $10,600; credit Estimated Warranty Liability $10,600 Debit Estimated Warranty Liability $7,800, credit Warranty Expense $7,800