The accounting records of Earthtone Cycle included the following at January 1, 2020 Estimated Warranty Payable January 1, 2020 24,800 In the past, Earthtone Cycle's warranty expense has been 4 percent of sales. During 2020, Earthtone Cyce made sales of $1,075,000 and paid $32,000 to satisfy warranty claims Required Record Earthtone Cycle's warranty expense and warranty payments during 2020. Explanations are not required 2. What balance of Estimated Warranty Payable will Earthtone Cycle report on its balance sheet at December 31, 2020? 1