Calculaton Problem 8-79A (Algorithmic) Warranties Mason Auto Repair specializes in the repair of foreign car transmissions. To encourage business, Mason offers a 6- month warranty on all repairs. The following data are available for 2019 Transmissions repaired, 2019 2,500 Expected frequency of warranty claims 0.03 per repair Actual warranty claims, 2019 $24,600 Estimated warranty liability, 1/1/19 $19,600 Estimated cost of each warranty claim $300 Assume that warranty claims are paid in cash. Required: 1. Compute the warranty expense for 2019 2. Prepare the entry to record the payment of the 2019 warranty claims (Record payment of claims) 3. Conceptual Connection: What is the December 31, 2019, balance in the estimated warranty liability account? Next 5 more Check My Work usos remaining. Check My Work Submit Assignment for Grading Email Instructor Save and Exit x W DD S12. 10 & 9 7 6 Transmissions repaired, 2019 2,500 Expected frequency of warranty claims 0.03 per repair Actual warranty claims, 2019 $24,600 Estimated warranty liability, 1/1/19 $19,600 Estimated cost of each warranty claim $300 Assume that warranty claims are paid in cash. Required: 1ech try 1. Compute the warranty expense for 2019. 2. Prepare the entry to record the payment of the 2019 warranty claims dropdown (Record payment of claims) 3. Conceptual Connection: What is the December 31, 2019, balance in the estimated warrantty liability account? Why has the balance in the estimated warranty liability account changed from January 1, 20197 The balance has because more claims were than were through warranty expense. Check My Work 5 more Check My Work uses remaining Next Save and Exit Emall Instructor Submit Assignment for Grading & 6 7 8 9 U P Y O