Cutters sells razors at $80 each. The razors have a 90 day warranty that requires the Company to replace any nonworking razor. The Companys cost per razor is $20. The manufacturer estimates an 8% of sales dollars failure rate. In a recent month 150 razors were sold for $15,000 cash. 13 razors were replaced during the month and the beginning balance in the warranty liability account was a credit of $3,000.

(A) What is the warranty expense for this month

(B) What is the month end balance in the liability account?