Warranties In 2019, Waldo Balloons sold 100 hot air balloons at $3,500 each. The balloons carry a 5-year warranty for defects. Waldo estimates that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of the year was $42,000. Claims of $11,000 were actually incurred during the year to honor their warranties. Required: What was the balance in the warranty liability account at the end of the year