Monthly sales are $530,000. Warranty costs are estimated at 3% of monthly sales. Warranties are honored with replacement products. No defective products are returned during the month. At the end of the month, the company should record a journal entry with a credit to:
A. Sales for $15,900
B. Warranty Expense for $15,900
C. Estimated Warranty Payable for $15,900
D. Inventory for $15,900
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