Problem 8-79A (Algorith mic) Warranties Mason Auto Repair specializes in the repair foreign car transmissions. To encourage business, Mason offers a 6-month warranty on all repairs. The following data are available for 2019: Transmissions repaired, 2019 5,600 0.03 per repair Expected frequency of warranty claims $44,200 Actual warranty claims, 2019 Estimated warranty liability, 1/1/19 $35,200 Estimated cost of each warranty claim $240 Assume that warranty claims are paid cash. Required: 1. Compute the warranty expense for 2019. 2. Prepare the entry to record the payment of the 2019 warranty claims. (Record payment of claims) 3. Conceptual Connection: What is the December 31, 2019, balance in the estimated warranty liability account? $ Why has the balance in the estimated warranty liability account changed from January 1, 2019? than were The balance has because more claims were through warranty expense