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All ThingsDigital, Inc. starts the year with a credit balance of $2,700 in its Estimated Warranty Payable account. During theyear, there were $226,000 in sales

All ThingsDigital, Inc. starts the year with a credit balance of

$2,700

in its Estimated Warranty Payable account. During theyear, there were

$226,000

in sales and

$4,700

in warranty repair payments. All Things Digital estimates warranty expense at

2%

of sales. At the end of theyear, what is the balance in the Estimated Warranty Payableaccount?

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