Franconia Sales Offers Warranties on All Their Electronic Goods $$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

question 100

Essay

Franconia Sales offers warranties on all their electronic goods.Warranty expense is estimated at 2% of sales revenue.In 2014,Franconia had $500,000 of sales.In the same year,Franconia paid out $7,500 of warranty payments.Please provide the journal entry to record the disbursement of warranty payments.
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Definitions:

Creutzfeldt-Jakob Disease

An uncommon, progressive, always lethal brain disease that impacts roughly one out of every million individuals annually.

Alzheimer's Disease

A progressive neurodegenerative disease that causes memory loss and cognitive decline.

Creutzfeldt-Jakob Disease

A rare, degenerative, invariably fatal brain disorder caused by an abnormal form of a protein, leading to rapid cognitive decline and, eventually, death.

Huntington's Disease

A genetic disorder that causes the progressive breakdown of nerve cells in the brain, affecting an individual’s functional abilities and usually resulting in movement, cognitive, and psychiatric disorders.