1. (chp 8) 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:

2. Transmissions repaired, 2019	3,100
   Expected frequency of warranty claims	0.03	per repair
   Actual warranty claims, 2019	$27,500
   Estimated warranty liability, 1/1/19	$21,900
   Estimated cost of each warranty claim	$270

   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? $

   Why has the balance in the estimated warranty liability account changed from January 1, 2019?

   The balance has because more claims were than were through warranty expense.