During August,Boxer Company Sells $356,000 in Merchandise That Has a One

Multiple Choice

During August,Boxer Company sells $356,000 in merchandise that has a one year warranty.Experience shows that warranty expenses average about 5% of the selling price.The warranty liability account has a credit balance of $12,800 before adjustment.Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs.The entry to record the estimated warranty expense for the month is:

A) Debit Warranty Expense $17,800;credit Estimated Warranty Liability $17,800.
B) Debit Warranty Expense $5,000;credit Estimated Warranty Liability $5,000.
C) Debit Warranty Expense $14,400;credit Estimated Warranty Liability $14,400.
D) Debit Estimated Warranty Liability $9,400;credit Warranty Expense $9,400.
E) Debit Estimated Warranty Liability $17,800;credit Warranty Expense $17,800.