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A company has a selling price of $1,800 each for its printers. Each printer has a...

A company has a selling price of $1,800 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all printers sold will be returned under the warranty at an average cost of $150 each. During November, the company sold 30,000 printers, and 400 printers were serviced under the warranty at a total cost of $55,000. The balance in the Estimated Warranty Liability account at November 1 was $29,000.

Calculate and record the company’s warranty expense for November 2016.

What is the balance of the estimated warranty liability as of November 30, 2016? Show all work!

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