8.4

Barry's Party Warehouse provides wholesale party equipment and materials to Party Shops, Barry's Party sold 46 bounce houses at $29,000 each. The bounce houses carry a 4 -year warranty for defects. Barry's estimates that repair costs will average 2% of the total seling price. The estimated warranty liability at the beginning of the year was $25,000. Caims of $23,000 were actually incurred during the year to honor warranties. Required: What was the balance in the Estimated Warranty Lability account at the end of the year