A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is:
A.
|
Warranty Expense
|
7,400
|
|
|
Sales
|
|
7,400
|
B.
|
Warranty Expense
|
7,400
|
|
|
Estimated Warranty Liability
|
|
7,400
|
C.
|
Estimated Warranty Liability
|
7,400
|
|
|
Estimated Warranty Expense
|
|
7,400
|
D.
|
Warranty Liability
|
7,400
|
|
|
Cash
|
|
7,400
|
E. No entry is recorded until the items are returned for warranty repairs