Jumbo Sales Offers Warranties on All Their Electronic Goods B) $$\begin{array} { | c | l | l | } \hline \text { Warranty expense } & \$ 17,850 & \\\hline \text { Sales revenue } & & 17,850 \\\hline\end{array}$$

Jumbo Sales offers warranties on all their electronic goods.Warranty expense is estimated at 3% of sales revenue.In 2016,Jumbo had $595,000 of sales.In the same year,Jumbo paid out $16,000 of warranty payments.Which of the following is the entry needed to record the estimated warranty expense?

A) $$\begin{array} { | l | l | l | } \hline \text { Warranty expense } & \$ 16,000 & \\\hline \begin{array} { l } \text { Estimated warranty } \\\text { payable }\end{array} & & 16,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | l | l | } \hline \text { Warranty expense } & \$ 17,850 & \\\hline \text { Sales revenue } & & 17,850 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | l | } \hline \text { Warranty expense } & \$ 17,850 & \\\hline \begin{array} { l } \text { Estimated warranty } \\\text { payable }\end{array} & & 17,850 \\\hline\end{array}$$
D) $$\begin{array} { | c | l | l | } \hline \text { Estimated warranty payable } & \$ 16,000 & \\\hline \text { Cash } & & 16,000 \\\hline\end{array}$$