Scout company sold $15.000 of merchandise in september with a three-month warranty. the cost to repair defects under warranty is estimated at 5% of the sales price. the journal entry to record the estimated warranty expense for the month of september will include a
a. debit to product warranty expense for $750
b. credit to product warranty expense for $750.
c. debit to product warranty payable for $7,500.
d. credit to product warranty payable for $7.500.