Vargas, Inc. sold goods with a seling price of $64,000 in 2025 and estimated 2% warranty expense for the year: Customers complained of defects, and goods with a cost of $2,500 had to be replaced. Which of the following is the correct journal entry for honoring the warranties with goods? OA. Estimated Warranty Payable 2,500 Warranty Expense 2,500 OB. Warranty Expense 2.500 Merchandise Inventory 2,500 OC. Estimated Warranty Payable Cash 2,500 2,500 OD. Estimated Warranty Payable Merchandise Inventory 2,500 2,500