Nance Company estimates its annual warranty expense as 4% of annual net sales. The following data relate to the calendar year 2010:

Net sales $1,500,000
Warranty liability account
Balance, Dec. 31, 2010 $10,000 debit before adjustment
Balance, Dec. 31, 2010 50,000 credit after adjustment

Which one of the following entries was made to record the 2010 estimated warranty expense?

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Just take 4% times your net sales to your total amount of warranty expense then use the total amount to determine which of your balances before the adjusting entry was made to get the total amount of warranty expense.