201 During 20X1, Long Gone Company sold 80 4-wheelers for $5,000 each. The "vehicles" carry a 3-year warranty for defects. Estimates Indicate that repair costs will average 3% of the total selling price. The estimated warranty liability at the beginning of the year was $20,000. $14,000 in claims were actually incurred during the year. What was the balance in the warranty liability account at the end of the year? (hint: you might want to use a t-account like the one given below] Warranty Liability Multiple Choice $12,000 $32,000 On November 1, 20X1 XYZ Company signed a $231,000, 7%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1 20X2. Which one of the following is correct with respect to the reporting of any accrued interest and the Note Payable (N/P) on the December 31, 20X1 balance sheet? Interest Payable Note Payable A. current liability non-current liability B. current liability current liability C. non-current liability: non-current liability D. non-current liability current liability Multiple Choice