Listed below are selected items from the financial statements of a company for the year ended December 31, Year 1.
| Salaries Payable | 63,000 |
| Accounts payable | 35,000 |
| Current Maturity of Long-Term Debt | 25,000 |
| Bonds payable, due December 31, Year 20 | 2,200,000 |
| Premium on Bonds Payable | 14,000 |
| Estimated Warranty Liability | 10,000 |
| Note Payable, due Dec. 31, Year 4 | 75,000 |
| Unearned Revenue | 25,000 |
| Note Payable, due June 1, Year 2 | 8,000 |
| Discount on Note Payable due June 1, Year 2 | 500 |
A company estimates the cost of products warranties to be 3% of sales. The beginning balance in Estimated Warranty Liability account is $15,000. Sales for the period was $795,000. During the period, $32,600 was actually paid for warranty related costs. What is the ending balance in the Warranty Liability account?
A company provides a warranty on its products that it sells to customers. The warranty liability account had $1,200 balance on April 1. The company had sales of $67,000 in April and estimated warranty repairs at 3% of sales. During the month, the company actually paid out $2,400 for warranty repairs.
Determine the April 30 balance in the estimated warranty liability account.