Bamstormers USA guarantees tires against defects for five years or

$60,000$ miles, whichever comes first. Suppose Barnstormers USA can

expect warranty costs during the five$-$year period to add up to $7\%$ of

sales. Assume that a Barnstormers USA dealer in St$.$ Paul, Minnesota,

made sales of $$460,000$ during $2016.$ Barnstormers USA received cash

for $15\%$ of the sales and took notes receivable for the remainder.

Payments to satisfy customer warranty claims totaled $$19,700$ during

Record the sales, warranty expense, and wairranty payments for

Barnstormers USA.

Post to the Estimated Warranty Payable T$-$account. The beginning

balance was $$16,000.$ At the end of $2016,$ how much in estimated

warranty payable does Barnstormers USA owe to its customers?

Req.

$1$

Req.

$2$