Alpha Company sells widgets for $20 each. The widget has a one year warranty.Alpha estimates that 6% of the widgets will require repair during the warranty period. The estimated average repair cost is $4.30 per widget.On July 31, the Estimated Warranty Liability account had a normal balance of $15,000. During August, sales were $70,000. During August, 550 widgets were repaired under the warranty agreement with an actual cost of $4.50 each.Use this information to determine:

1. The August 31 Estimated Warranty Liability ending balance

2. The August Warranty Expense