Harr Company began selling a new computer that carried a 1-year warranty against defects. Based on the manufacturer's recommendations, Harr projects warranty costs at 3% of sales. Sales for 20X1 were $625,000.

1. Calculate the estimated warranty expense for 20X1.
2. Record the entry to reflect the warranty expense for 20X1.
3. Actual warranty expense for the first year of selling the new computer was $16,450. Record the entry to reflect the actual warranty expense for 20X2.
4. What is the ending balance in the warranty liability account at the end of 20X2?