The accounting records of EarthtoneCeramics included the following at January 1, 2016

:

Estimated Warranty Payable
		4,000	Beg. Bal.

In the past, Earthtone's warranty expense has been 8 %of sales. During 2016, Earthtonemade sales of $ 175,000 and paid $ 9,000 to satisfy warranty claims.

Requirements

1. Journalize Earthtone's warranty expense and warranty payments during 2016

2. What balance of Estimated Warranty Payable will Earthtonereport on its balance sheet at December 31, 2016?