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A company sold 1 2 2 bikes at $ 1 8 0 each. The bikes carry a 3 - year warranty for defects. The company

A company sold 122 bikes at $180 each. The bikes carry a 3-year warranty for defects. The company estimates that repair costs will average 5.0% of the total selling price. The estimated warranty liability at the beginning of the year was $1,100 and $1,500 in claims were actually incurred during the year to honor the warranty. What was the ending balance in the estimated warranty liability account?
Select one:
a. $1,098
b. $698
c. $1,272
d. $400
e. $1,498

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