The following transactions of Jasmine Reef occurred during 2018:
Apr. 30 Reef is party to a patent infringement lawsuit of $190,000. Reef's attorney is certain it is remote that Reef will lose this lawsuit.
Jun. 30 Estimated warranty expense at 2% of sales of $350,000.
Jul. 28 Warranty claims paid in the amount of $5,500.
Sep. 30 Reef is party to a lawsuit for copyright violation of $80,000. Reef's attorney advises that it is probable Reef will lose this lawsuit. The attorney estimates the loss at $80,000.
Dec. 31 Reef estimated warranty expense on sales for the second half of the year of $510,000 at 2%.
Requirements
1. Journalize required transactions, if any, in Reef's general journal. Explanations are not required.
2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?