During July,Audio City Sold 200 Radios for $50 Each $\begin{array}{llr} \text { Product Warranty Expense} &30\\ \text {Estimated Product Warranty Liability } &&30\\ \end{array}$

During July,Audio City sold 200 radios for $50 each.Each radio had cost Audio City $30 to purchase and carried a two-year warranty.If 5 percent typically need to be replaced over the warranty period and one actually is replaced during July,the entry to record the Product Warranty Expense is:

A)
$\begin{array}{llr} \text { Product Warranty Expense} &30\\ \text {Estimated Product Warranty Liability } &&30\\ \end{array}$

B)
$\begin{array}{l}\text { Product Warranty Expense } & 150\\\text { Cash }&&150\end{array}$

C)
$\begin{array}{llr} \text { Product Warranty Expense } &300\\ \text { Estimated Product Warranty Liability} &&300\\\end{array}$

D)
$\begin{array}{llr} \text { Estimated Product Warranty Liability } &600\\ \text { Product Warranty Expense } &&600\\\end{array}$