The accounting records of RM Cycle included the following at January 1, 2020:

In the past, RM Cycle's warranty expense has been 3 percent of sales. During 2020, RM Cycle made sales of \(\$ 1,038,000\) and paid \(\$ 27,900\) to satisfy warranty claims.
Required
1. Record RM Cycle's warranty expense and warranty payments during 2020. Explanations are not required.
2. What balance of Estimated Warranty Payable will RM Cycle report on its balance sheet at December 31, 2020?

Transcribed Image Text:

Estimated Warranty Payable Jan 1 24,800