Tremblay Limited, a new company, made sales (all on account) of $.600,000. The company estimated warranty repairs at 3 percent of sales. Tremblay's actual warranty payments were $12,500. Record sales, warranty expense, and warranty payments on December 31. How much is Tremblay's estimated warranty payable at the end of the period?

Begin with the journal entry to record the sales made on account during the year. (Record debits first, then credits. Exclude explanations from journal entries.)

Next, make the journal entry for the warranty expense for the year.

The last journal entry is for the warranty payments made during the year.

How much is Tremblay's estimated warranty payable at the end of the period?