The following transactions of Hailey Nelson occurred during 2018:

Apr. 30	Nelson is party to a patent infringement lawsuit of $200,000. Nelson's attorney is certain it is remote that Nelson will lose this lawsuit.
Jun. 30	Estimated warranty expense at 33% of sales of $360,000.
Jul. 28	Warranty claims paid in the amount of $5,800.
Sep. 30	Nelson is party to a lawsuit for copyright violation of $120,000. Nelson's attorney advises that it is probable Nelson will lose this lawsuit. The attorney estimates the loss at $120,000.
Dec. 31	Nelson estimated warranty expense on sales for the second half of the year of $490,000 at 3%

Requirement 1

Requirement 1. Journalize required transactions, if any, in Nelson's general journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. For transactions that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.)

Apr. 30: Nelson is party to a patent infringement lawsuit of $200,000. Nelson's attorney is certain it is remote that Nelson will lose this lawsuit.

Date			Accounts	Debit	Credit
Apr. 30

Jun. 30: Estimated warranty expense at 3% of sales of $360,000.

Date			Accounts	Debit	Credit
Jun. 30

Jul. 28: Warranty claims paid in the amount of $5,800.

Date			Accounts	Debit	Credit
Jul. 28

Sep. 30: Nelson is party to a lawsuit for copyright violation of $120,000. Nelson's attorney advises that it is probable Nelson will lose this lawsuit. The attorney estimates the loss at $120,000.

Date			Accounts	Debit	Credit
Sep. 30

Dec. 31: Nelson estimated warranty expense on sales for the second half of the year of $490,000 at 3%.

Date			Accounts	Debit	Credit
Dec. 31

Requirement 2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?

Use the T-account to determine the ending balance for the Estimated Warranty Payable account. Use a "Bal." posting reference to show the ending balance of the account.

Estimated Warranty Payable