Ragas, Inc. sold goods with a selling price of $62,000 in the 2017 and estimated 4% warranty expense for the year. Customers complained of defects, and goods with a cost of $3,500 had to be replaced. Which of the following is the correct journal entry for honoring the warranties with goods?

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The Answer of Ragas, Inc. sold goods with a selling price of $62,000 in the 2017 and estimated 4% warranty expense for the year. Customers complained of defects, and goods with a cost of $3,500 had to be replaced. Which of the following is the correct journal entry for honoring the warranties with goods?