Classic Sales Corporation Offers Warranties on All Their Electronic Goods $\begin{array}{|l|l|l|}\hline \text { Estimated Warranty Payable } & 12,000 & \\\hline \text { Cash } & & 12,000\\\hline\end{array}$

Classic Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 3% of sales revenue. In 2018, the company had $602,000 of sales. In the same year, it paid out $12,000 of warranty payments. Which of the following is the entry needed to record the estimated warranty expense?

A) $\begin{array}{|l|l|l|}\hline \text { Estimated Warranty Payable } & 12,000 & \\\hline \text { Cash } & & 12,000\\\hline\end{array}$
B) $\begin{array}{|l|l|l|}\hline\text { Warranty Expense } & 12,000 & \\\hline \text { Estimated Warranty Payable } & & 12,000\\\hline\end{array}$
C) $$\begin{array} { | l | r | r | } \hline \text { Warranty Expense } & 18,060 & \\\hline \text { Estimated Warranty Payable } & & 18,060 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Warranty Expense } & 18,060 & \\\hline \text { Sales Revenue } & & 18,060 \\\hline\end{array}$$