The accounting records of Rustic Ceramics included the following at January $1,2016$ :

Estimated Warranty Payable

$3,000$ Beg. Bal.

In the past, Rustic's warranty expense has been $8\%$ of sales. During $2016,$ Rustic made sales of $$181,000$ and paid $$5,000$ to satisfy warranty claims.

Requirements

Journalize Rustic's warranty expense and warranty payments during $2016.$ Explanations are not required.

What balance of Estimated Warranty Payable will Rustic report on its balance sheet at December $31,2016?$

Requirement $2.$ What balance of Estimated Warranty Payable will Rustic report on its balance sheet at December $31,2016?$

Bal.$)$ has been entered for you.