The following transactions of Dunn Miles occurred during 2014:

Apr. 30 Miles is party to a patent infringement lawsuit of $ 230,000. Miles’s attorney is certain it is remote that Miles will lose this lawsuit.

Jun. 30 Estimated warranty expense at 3% of sales of $ 430,000.

Jul. 28 Warranty claims paid in the amount of $ 6,400.

Sep. 30 Miles is party to a lawsuit for copyright violation of $ 130,000. Miles’s attorney advises that it is probable Miles will lose this lawsuit. The attorney estimates the loss at $ 130,000.

Dec. 31 Miles estimates warranty expense on sales for the second half of the year of $ 510,000 at 3%.

Requirements

1. Journalize required transactions, if any, in Miles’s general journal. Explanations are not required.

2. What is the balance in Estimated Warranty Payable?