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

Jumbo Sales Corporation offers warranties on all their electronic goods.Warranty expense is estimated at 3% of sales revenue.In 2017,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) $$\begin{array} { | l | r | r | } \hline \text { Estimated Warranty Payable } & 12,000 & \\\hline \text { Cash } & & 12,000 \\\hline\end{array}$$
B) $$\begin{array} { | l| r | r | } \hline \text { Warranty Expense } & 12,000 & \\\hline \text { Estimated Warranty Payable } & & 12,000 \\\hline\end{array}$$
C) $$\begin{array} { |l| r | r | } \hline \text { Warranty Expense } & 18,060 & \\\hline \text { Estimated Warranty Payable } & & 18,060 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Warranty Expense } & 18,060 & \\\hline \text { Sales Revenue } & & 18,060 \\\hline\end{array}$$