The accounting records of Rustic Ceramics included the following at January $1,2024$:

$($Click the icon to view the data.$)$

In the past, Rustic's warranty expense has been $3\%$ of sales. During $2024,$ Rustic made sales of $$134,000$ and paid $$5,500$ to satisfy warranty claims.

Read the requirements.

Estimated Warranty Payable

$4,020$

Journalize the warranty payments.

$\backslash$table$[[$Date$,$Accounts,Debit,Credit$],[,\backslash$table$[[$Estimated Warranty Payable$],[$Cash$]],5,500,],[,,,5,500],[,,,]]$

Requirement $2.$ What balance of Estimated Warranty Payable will Rustic report on its balance sheet at December $31,2024?$

Use the T$-$account to determine the ending balance for the Estimated Warranty Payable account. Use an "End. Bal." posting reference to show the ending balance of the account. The beginning balance $($Beg$.$ Bal.$)$ has been entered for you.

Estimated Warranty Payable

$\backslash$table$[[,4,500$ Beg. Bal.$]]$