The following transactions of Percy Bowes occurred during 2016:
Apr. 30 Bowes is party to a patent infringement lawsuit of $200,000. Bowes's attorney is certain it is remote that Bowes will lose this lawsuit.
Jun. 30 Estimated warranty expense at 4% of sales of $450,000.
Jul. 28 Warranty claims paid in the amount of $6,300.
Sep. 30 Bowes is party to a lawsuit for copyright violation of $120,000. Bowes's attorney advises that it is probable Bowes will lose this lawsuit. The attorney estimates the loss at $120,000.
Dec. 31 Bowes estimated warranty expense on sales for the second half of the year of $480,000 at 4%.
Requirements
1. Journalize required transactions, if any, in Bowes’s general journal. Explanations are not required.
2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?