X Company estimates its annual warranty expense as 2% of annual net sales. The net sales $1,500,000. Which one of the following entries was made to record the 2021 estimated warranty expense? a. Dr. Warranty Expense 45,000, Cr. Retained Earnings 7,500 and Cr. Warranty Liability 37,500 b. Dr. Warranty Expense 30,000 and Cr. Warranty Liability 30,000 C. Dr. Warranty Expense 37,500, Dr. Retained Earnings 7,500 and Cr. Warranty Liability 45,000 d. Dr. Warranty Expense 45,000 and Cr. Warranty Liability 45,000