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.
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