A Company Estimates That Warranty Expense Will Be 4% of Sales.The

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)
$\begin{array}{|l|l|l|}\hline \text { Warranty Expense } & 7,400 & \\\hline \text { Sales } & & 7,400 \\\hline\end{array}$
B)
$\begin{array}{|c|c|c|}\hline \text { Warranty Expense } & 7,400 & \\\hline \text { Estimated Warranty Liability } & & 7,400 \\\hline\end{array}$

C)
$\begin{array}{|c|c|c|}\hline \text { Estimated Warranty Liability } & 7,400 & \\\hline \text { Estimated Warranty Expense } & & 7,400 \\\hline\end{array}$

D)
$\begin{array}{|l|l|l|}\hline \text { Warranty Liability } & 7,400 & \\\hline \text { Cash } & & 7,400 \\\hline\end{array}$

E) No entry is recorded until the items are returned for warranty repairs