Ragas,Incsold Goods with a Selling Price of $50,000 in the 2017

Ragas,Inc.sold goods with a selling price of $50,000 in the 2017 and estimated 5% warranty expense for the year.Customers complained of defects,and goods with a cost of $1,500 had to be replaced.Which of the following is the correct journal entry for honoring the warranties with goods?

A) $$\begin{array} { | l | r | r | } \hline \text { Estimated Warranty Payable } & 1,500 & \\\hline \text { Cash } & & 1,500 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Estimated Warranty Payable } & 1,500 & \\\hline \text { Merchandise Inventory } & & 1,500 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Warranty Expense } & 1,500 & \\\hline \text { Merchandise Inventory } & & 1,500 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Estimated Warranty Payable } & 1,500 & \\\hline \text { Warranty Expense } & & 1,500 \\\hline\end{array}$$