Arc Digital starts the year with balances in its Estimated warranty payable account (1400 credit )and Warranty expense ( zero balance). During the year, there were $190,000 of sales and $3,200 of warranty repair payments. Arc Digital estimates warranty expense at 1.5% of sales. Calculate warranty expense of the year. Journalize necessary transactions. Calculate ending balance of warranty payable and show it on the T-account. Show all of your calculations.

Arc Digital starts the year with balances in its estimated warranty payable account (1400 credit and Warranty expense ( zero balance). During the year. there were $190,000 of sales and $3,200 of Warranty repair payments. Arc Digital estimates warranty expense at 1.5 of sales, Calculate warranty expense of the year. Journalize necessary transactions, Calculate ending balance of warranty payable and show it on the T-account Show all of your calculations