Testbank Multiple Choice Question 131 Waterway Industries estimates its annual warranty expense as 4% of annual net sales. The following data relate to the calendar year 2021: $1515000 Net sales Warranty liability account Balance, Dec. 31, 2020 Balance, Dec. 31, 2021 $11000 debit before adjustment 49600 credit after adjustment Which one of the following entries was made to record the 2021 estimated warranty expense? 60600 60600 O Warranty Expense Warranty Liability O Warranty Expense Retained Earnings (prior-period adjustment) Warranty Liability 50480 10120 60600 49600 O Warranty Expense Warranty Liability 49600 60600 O Warranty Expense Retained Earnings (prior-period adjustment) Warranty Liability 10120 50480