TB MC Qu. 11-114 A company estimates that warranty expense... A company estimates that warranty expense will be 3% of sales. The company's sales for the current period are $164,000. The current period's entry to record the warranty expense is: Multiple Choice Debit Warranty Expense $4,920 credit Sales $4.920. Debit Warranty Expense $4,920 credit Estimated Warranty Liability $4,920. Debit Estimated Warranty Liability $4,920 credit Cash $4,920. No entry is recorded until the items are returned for warranty repairs. Debit Estimated Warranty Liability $4,920 credit Warranty Expense $3,400