TB MC Qu. 11-145 During June, Vixen Company... During June, Vixen Company sells $850,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 3% of the selling price. Customers returned $14,000 of merchandise for warranty replacement during the month. The entry to settle the customer warranties is Multiple Choice Debit Warranty Expense $11,500, credit Estimated Warranty Liability $11,500 Debit Estimated Warranty Liability $25,500, credit Warranty Expense $25,500.