Problem 8-79A Warranties Lincoln Repairs and Detailing has recently opened its doors to provide quality auto repair services. To encourage business, Lincoln offers a 9-month warranty on all repairs. The following data are available for 2019: 1,980 Transmissions repaired, 2019 Expected frequency of warranty claims Actual warranty claims, 2019 0.05 per repair $26,200 $28,000 $220 Estimated warranty liability, 1/1/19 Estimated cost of each warranty claim 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. (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 warranty liability account changed from January 1, 2019? The balance has because more claims were than were than were through warranty expense. through