During 2009, High-Flying Adventures (HFA), Inc. sold 100 hot air balloons for $4,000 each. The balloons carry a 5-year warranty for defects. HFA estimates that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of the year was $42,000. $11,000 in claims was actually incurred during the year to honor their warranty. What was the balance in the estimated warranty liability at the end of the year? O $47,000 $42,000 $37,000 O$ 5,000