Booker Company Reported Sales Revenue for 2013 of $800 000

Booker Company reported sales revenue for 2013 of $800 000. The products were sold with a six- month warranty. Members of Booker's management estimate the cost of the warranty will be equal to 3% of sales revenue. Which of the following is included in the entry to record the actual amounts paid out as a result of warranty claims?

A) A debit to Estimated warranty payable for $24 000
B) A credit to Estimated warranty payable for $24 000
C) A debit to Estimated warranty payable for the actual amount of payments
D) A debit to Warranty expense for the actual amount of payments