Problem 8-79A (Algorithmic) Warranties Mason Auto Repair specializes in the repair of foreign car transmissions. To encourage business, Mason offers a 6-month warranty on all repairs. The following data are available for 2019: Transmissions repaired, 2019 3,400 Expected frequency of warranty claims 0.03 per repair Actual warranty claims, 2019 $38,000 Estimated warranty liability, 1/1/19 $30,200 Estimated cost of each warranty claim $340 Assume that warranty claims are paid in cash. Required: Question Content Area 1. Compute the warranty expense for 2019. $fill in the blank 84c914063045079_1 Question Content Area 2. Prepare the entry to record the payment of the 2019 warranty claims. blank - Select - - Select - (Record payment of claims) Question Content Area 3. Conceptual Connection: What is the December 31, 2019, balance in the estimated warranty liability account? $fill in the blank 86ed56039fddf91_1 Why has the balance in the estimated warranty liability account changed from January 1, 2019? The balance has because more claims were than were through warranty expense.
(M1)
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