Montague Auto Repair specializes in the repair of foreign car transmissions. To encourage business, Montague offers a 6-month warranty on all repairs. The following data are available for 2019:

Transmissions repaired, 2019	4,500
Expected frequency of warranty claims	0.09	per repair
Actual warranty claims, 2019	$110,000
Estimated warranty liability, 1/1/19	$25,000
Estimated cost of each warranty claim	$250

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.
3.	Conceptual Connection: What is the December 31, 2019, balance in the warranty liability account? Why has the balance in the warranty liability account changed from January 1, 2019?