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Problem - A company sells audio systems with an 18-month warranty. During January X2, the company sold 300 systems at $16,750 each; and 2 systems had repairs under warranty at a total repair cost of $3,400. The company estimates (based on historical data) that 2% of all units sold will need warranty repairs within 18- months of sale at an estimated warranty repair cost of $1,600 per unit. If at January 31, X2 the company correctly reported a Warranty Obligation balance of $310,900, what was the ending warranty liability balance at December 31, X1?
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