Marshall Repairs and Detailing has recently opened its doors to provide quality auto repair services. To encourage business, Marshall offers a $6-$month warranty on all repairs. The following data are available for the $y$

Transmissions repaired

$6,500$

Expected frequency of warranty claims

$0\mathrm{.}03$ per repair

Actual warranty claims

$$57,700$

Beginning balance for estimated warranty liability

$$45,900$

Estimated cost of each warranty claim

$$270$

Assume that warranty claims are paid in cash.

Required:

Compute the warranty expense for the year.

Prepare the entry to record the payment of the warranty claims for the year. If an amount box does not require an entry, leave it blank.

$($Record payment of claims$)$