Kenneth Mole Company Sold $ 10,000 Worth of Luggage with a One-Year

Kenneth Mole Company sold $ 10,000 worth of luggage with a one-year warranty. The company estimates that 2% of the sales will result in a warranty payout. Kenneth Mole Company should

A) recognize warranty expense at the time of sale.
B) recognize warranty expense at the time warranty work is performed.
C) recognize warranty expense and warranty liability at the time of sale.
D) recognize warranty expense at the time warranty work is performed and warranty liability at the time of sale.