A Company Estimates That Warranty Expense Will Be 4% of Sales.The

A company estimates that warranty expense will be 4% of sales.The company's sales for the current period are $185,000.The current period's entry to record the warranty expense is:

A) $$\begin{array} { | c | c | c | } \hline \text { Wartanty Expense } & 7,400 & \\\hline \text { Sales } & & 7,400 \\\hline\end{array}$$
B) $$\begin{array} { | c | c | c | } \hline \text { Wartanty Expense } & 7,400 & \\\hline \text { Estimated Warranty Liability } & & 7,400 \\\hline\end{array}$$
C) $$\begin{array} { | c | c | c | } \hline \text { Estimated Warranty Liability } & 7,400 & \\\hline \text { Estimated Warranty Expense } & & 7,400 \\\hline\end{array}$$
D) $$\begin{array} { | c | c | c | } \hline \text { Wartanty Liability } & 7,400 & \\\hline \text { Cash } & & 7,400\end{array}$$
E) No entry is recorded until the items are returned for warranty repairs.