Superior Sales, Inc. offers warranties on all its electronic goods. Warranty expense is estimated at 3.5% of sales revenue. In 2018, Superior had sales of $333,000. In the same year, Superior replaced defective goods with merchandise inventory costing $8,750. Prepare the journal entry to record the warranty expense. Omit explanation.

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The Answer of Superior Sales, Inc. offers warranties on all its electronic goods. Warranty expense is estimated at 3.5% of sales revenue. In 2018, Superior had sales of $333,000. In the same year, Superior replaced defective goods with merchandise inventory costing $8,750. Prepare the journal entry to record the warranty expense. Omit explanation.