te following research and discussion questions concern estimated liabilities and specifically are based on counting for warranties and contingencies in accordance with GAAP. Please-use your Class Notes and teyt to isearch and respond to cach of the following situations. Where computations are involved please provide wellbeled computations. Whete explancations or descriptions are involved please support your answer and write usine ear, unequivocal langtuage: 4-- Speer Cycle Sales, Inc. offers warranties on all their bikes. They estimate warranty expense at 5% of sales. At the beginning of 2025, the Estimated Warranty Payable account had a credit balance of $1.900. During the year. 5 peer. Cycle Sales had $303000 in sales and had to pay out $5900 in warranty payments; In accordance with GaAP. how much Warranty Expense should Speer Cycle Sales report on the 2025 income statement