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Problem 8-79A (Algorithmic) Warranties Mason Auto Repair specializes in the repair of foreign car transmissions. To encourage business, Mason offers a 6-month warranty on all

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Problem 8-79A (Algorithmic) Warranties Mason Auto Repair specializes in the repair of foreign car transmissions. To encourage business, Mason offers a 6-month warranty on all remains. The following data are available for 2019: Transmission repaired, 2019 2,300 Expected frequency of warranty claims 0.03 per repair Actual warranty claims, 2019 $24,900 Estimated warranty liability, 1/1/19 $19.900 stimated cost of each warranty claim 5330 Assume that warranty claims are paid in cash Required: 1. Compute the warranty pene for 2018 2. Prepare the entry to record the payment of the 2019 warranty claims (Record payment of claima) Required: 1. Compute the warranty expense for 2019. 2. Prepare the entry to record the payment of the 2019 warranty claims. (Record payment or 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 The balance has because more claims were than were through warranty expense

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