The accounting records of Earth Automotive included the following at January $1,2025$:

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In the past, Earth Automotivelsarranty expense has been $98\%$ sales. During $2025$ Earth Automotivemade sales of $$132,000$ and paid $$9,500$ to satisfy warranty claims.

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Requirement $1.$ Journalize Earth Automotive's warranty expense and warranty payments during $2025.$ Explanations are not required. $($Record debits first, then credits. journal entries.$)$

Journalize the warranty expense.

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Data

Estimated Warranty Payable

$5,000$

Beg. Bal.

Requirements

Journalize Earth Automotive's warranty expense and warranty payments during $2025.$ Explanations are not required.

What balance of Estimated Warranty Payable will Earth Automotive report on its balance sheet at December $31,2025?$