On 30 June 2016,TV Manufacture Ltd,which Uses Accrual Accounting,estimates That

On 30 June 2016,TV Manufacture Ltd,which uses accrual accounting,estimates that it will incur warranty costs of $135 000 in the next financial year on products sold during the year just ended.On 7 October 2016,the manufacturer pays $21 000 under the warranty.
- What is the journal entry made by TV Manufacture Ltd on 7 October 2016?

A) Dr Warranty expense Cr Warranty liability
B) Dr Warranty liability Cr Warranty expense
C) Dr Warranty liability Cr Cash
D) Dr Cash Cr Warranty liability