The accounting records of Town \& Country, Inc., included the following balances at the end of the period:

In the past, Town \& Country's warranty expense has been 7 percent of sales. During the current period, the business paid \(\$ 10,430\) to satisfy the warranty claims of customers.
\section*{Required}
1. Record Town \& Country's warranty expense for the period and the company's cash payments during the period to satisfy warranty claims. Explanations are not required.
2. What ending balance of Estimated Warranty Payable will Town \& Country report on its balance sheet?

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Estimated Warranty Payable Sales Revenue Warranty Expense Beg. bal. 8,100 161,000