Jumbo Sales Offers Warranties on All Their Electronic Goods $$\begin{array} { | c | l | l | } \hline \text { Warranty expense } & \$ 24,520 & \\\hline \text { Sales revenue } & & 24,520 \\\hline\end{array}$$

Jumbo Sales offers warranties on all their electronic goods.Warranty expense is estimated at 4% of sales revenue.In 2016,Jumbo had $613,000 of sales.In the same year,Jumbo paid out $17,500 of warranty payments.Which of the following is the entry needed to record the disbursement of warranty payments?

A) $$\begin{array} { | c | l | l | } \hline \text { Warranty expense } & \$ 24,520 & \\\hline \text { Sales revenue } & & 24,520 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | l | } \hline \text { Warranty expense } & \$ 24,520 & \\\hline \begin{array} { l } \text { Estimated warranty } \\\text { payable }\end{array} & & 24,520 \\\hline\end{array}$$
C) $$\begin{array} { | c | l | l | } \hline \text { Estimated warranty payable } & \$ 17,500 & \\\hline \text { Cash } & & 17,500 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | } \hline \text { Warranty expense } & \$ 17,500 & \\\hline \begin{array} { l } \text { Estimated warranty } \\\text { payable }\end{array} & & 17,500 \\\hline\end{array}$$