Oak Park Appliances, Inc $\quad$ 21,900 $\quad$ $\quad$ $\quad$

Oak Park Appliances, Inc. sells food processors for $300 with a 120-day warranty against defects. Past experience indicates that 5% of the processors will have some defect during the warranty period and that the necessary repairs and adjustments will cost $50 per defective unit. Sales for August were $438,000. 30 of the units sold in August were reported defective and repaired in August.
What is the August 31 journal entry for the estimated liability for product warranties for units sold in August?

A) Product Warranty Expense $\quad$ 21,900
$\quad$ $\quad$ $\quad$ $\quad$ Estimated Liability for Product Warranty $\quad$ 21,900
B) Product Warranty Expense $\quad$ 3,650
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Estimated Liability for Product Warranty $\quad$ 3,650
C) Estimated Liability for Product Warranty $\quad$ 3,650
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Product Warranty Expense $\quad$ 3,650
D) Product Warranty Expense $\quad$ 2,150
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Estimated Liability for Product Warranty $\quad$ 2,150