Reference no: EM132565630

Question - Arc Digital starts the year with balances in its Estimated warranty payable account and Warranty expense account as shown below. During the year, there were $190,000 of sales and $190,000 of warranty repair payments. Arc Digital estimates warranty expense at 1.5% of sales. Two t-accounts are shown. The t-account on the left is labeled Estimated Warranty Payable and has $ 1,400 in the credit column. The t-account on the right is labeled Warranty Expense and has a zero on the debit column.

At the end of the year, what was the balance in the warranty expense account?