WARRANTIES USING T-ACCOUNTS. 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 19x9:

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Transmissions repaired, 19x9 2,430 Expected frequency of warranty claims .07 per repair Actual warranty claims, 19x9 181 Estimated warranty liability, 1/1/x9 $1,100 21 Cost of each warranty claim Assume that warranty claims are paid in cash. REQUIRED: 1. Compute the warranty expense for 19x9. 2. Prepare the entry in T-accounts to record the payment of the 19x9 warranty claims. 3. What is the December 31, 19x9, balance in the estimated warranty liability account? Why has the balance in the estimated warranty liability account changed from January 1, 19x9?