Jumbo Sales Offers Warranties on All Their Electronic Goods $$\begin{array} { | c | r | r | } \hline \text { Estimated Warranty Payable } & 8,500 & \\\hline \text { Cash } & & 8,500 \\\hline\end{array}$$

Jumbo Sales offers warranties on all their electronic goods. Warranty expense is estimated at 3% of sales revenue. In 2013, Jumbo had $595,000 of sales. In the same year, Jumbo paid out $8,500 of warranty payments. Which of the following is the entry needed to record the disbursement of warranty payments?

A) $$\begin{array} { | c | r | r | } \hline \text { Estimated Warranty Payable } & 8,500 & \\\hline \text { Cash } & & 8,500 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Warranty Expense } & 8,500 & \\\hline \text { Estimated Warranty Payable } & & 8,500 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Warranty Expense } & 17,850 & \\\hline \text { Estimated Warranty Payable } & & 17,850 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Warranty Expense } & 17,850 & \\\hline \text { Sales Revenue } & & 17,850 \\\hline\end{array}$$