During May,Photo Mart Sold 150 Instant Cameras for $100 Each $\begin{array}{llr} \text { Product Warranty Expense } &138\\ \text { Estimated Product Warranty Liability } &&138\\\end{array}$

Multiple Choice

During May,Photo Mart sold 150 instant cameras for $100 each.Each camera had cost Photo Mart $69 to purchase and carried a one-year warranty.If 4 percent typically need to be replaced over the warranty period and two actually are replaced during May,the entry to record the Product Warranty Expense for the month is:

A)
$\begin{array}{llr} \text { Product Warranty Expense } &138\\ \text { Estimated Product Warranty Liability } &&138\\\end{array}$

B)
$\begin{array}{llr} \text {Product Warranty Expense } &276\\ \text { Cash } &&276\\\end{array}$

C)
$\begin{array}{llr} \text {Product Warranty Expense } &552\\ \text { Cash } &&552\\\end{array}$

D)
$\begin{array}{l}\text { Product Warranty Expense }&414\\\text { Estimated Product Warranty Liability }&&414\end{array}$