The accounting records of Fired Up Ceramics included the following at January 1, 2016: In the past, Fired Up's warranty expense has been 5% of sales. During 2016 , Fired Up made sales of $169,000 and pai $5,000 to satisfy warranty claims. Requirements 1. Journalize Fired Up's warranty expense and warranty payments during 2016 . Explanations are not required. 2. What balance of Estimated Warranty Payable will Fired Up report on its balance sheet at December 31,2016