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Jumbo Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 3%...

Jumbo Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 3% of sales revenue. In 2013, the company had $595,000 of sales. In the same year, Jumbo paid out $8,500 of warranty payments. Which of the following is the entry needed to record the disbursement of warranty payments?
Answers:
Warranty Expense 8,500 ​
Estimated Warranty Payable ​ 8,500
Warranty Expense 17,850 ​
Sales Revenue ​ 17,850
Warranty Expense 17,850 ​
Estimated Warranty Payable ​ 17,850
Estimated Warranty Payable 8,500 ​
Cash ​ 8,500
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Estimated warranty payable    8500
Cash 8500
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