Appliance Mart, Inc. starts the year with a credit balance of $$3,500$ in its Estimated Warranty Payable account. During the year, there were $$224,000$ in sales and $$5,500$ in warranty repair payments.

Appliance Mart estimates warranty expense at $4\%$ of sales.

Requirement $1$: At the end of the year, what is the balance in the Estimated Warranty Payable account?

Requirement $2$: Prepare a journal entry for the payment of warranty repair payments.

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T$-$Balance