Question 25 (3 points) During 2009, High-Flying Adventures (HFA), Inc. sold 100 hot air balloons for $4,000 each. The balloons carry a 5-year warranty for defects. HFA estimates that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of the year was $42,000. $11,000 in claims was actually incurred during the year to honor their warranty. What was the balance in the estimated warranty liability at the end of the year? $47,000 $42,000 $37,000 $ 5.000 Question 26 (3 points) During 2009, S&S Hardware Company sold 400 chain saws for $350 each. The chain saws carry a 2-year warranty for repairs. S&S estimates that repair costs will average 2% of the total selling price. How much is recorded in the estimated warranty liability account as a result of selling the chain saws in 2009? $4,200 $2,800 $1,400 No liability should be recorded until the chain saws are brought in for repairs. Question 27 (3 points) Failure to record estimated warranty liability in the same period as the related sales represents a violation of the O concept of historical cost. Ogoing concern assumption. limitation of materiality. matching principle