If Product X Cost $50 and Had a 4 Percent

Multiple Choice

If product X cost $50 and had a 4 percent failure rate during the warranty period,the entry to record the estimated product warranty expense in a month when 1,000 units are sold would be

A) Product Warranty Expense 2,000
Estimated Product Warranty Liability 2,000
B) Product Warranty Expense 200
Estimated Product Warranty Liability 200
C) Product Warranty Expense 20
Cash 20
D) Estimated Product Warranty Liability 50
Cash 50