The following transactions of Belkin Howe occurred during 2018:
Apr. 30 Howe is party to a patent infringement lawsuit of $230,000. Howe's attorney is certain it is remote that Howe will lose this lawsuit.
Jun. 30 Estimated warranty expense at 3% of sales of $390,000.
Jul. 28 Warranty claims paid in the amount of $6,300.
Sep. 30 Howe is party to a lawsuit for copyright violation of $90,000. Howe's attorney advises that it is probable Howe will lose this lawsuit. The attorney estimates the loss at $90,000.
Dec. 31 Howe estimated warranty expense on sales for the second half of the year of $520,000 at 3%.
Requirements
1. Journalize required transactions, if any, in Howe's general journal. Explanations are not required.
2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?