On October $1,2024,$ Benson Company sells $5,000$ microwaves at an average price of $$500.$ The product includes a one$-$year warranty on parts. Based on past experience, it is expected that $2\%$ will be defective, and that warranty repair costs will average $$125$per unit. In $2024,$ warranty contracts were honored on $40$ units at a total cost of $$5,000.$ Which of the following is the correct summary journal entry to record for the repairs?

Responses

Warranty Expense $($Debit$)5,000$

Repair Parts Inventory $($and$/$or Wages Payable$)($Credit$)5,000$

Warranty Expense $($Debit$)5,000$ Repair Parts Inventory $($and$/$or Wages Payable$)($Credit$)5,000$

Warranty Expense $($Debit$)5,000$

Warranty Liability $($Credit$)5,000$

Warranty Expense $($Debit$)5,000$ Warranty Liability $($Credit$)5,000$

Warranty Liability $($Debit$)5,000$

Repair Parts Inventory $($and$/$or Wages Payable$)($Credit$)5,000$

Warranty Liability $($Debit$)5,000$ Repair Parts Inventory $($and$/$or Wages Payable$)($Credit$)5,000$

Warranty Liability $($Debit$)5,000$

Cash $($Credit$)5,000$

Warranty Liability $($Debit$)5,000$ Cash $($Credit$)5,000$