Bike World Inc.offers warranties on all their bikes.They estimate warranty expense at 3.5% of sales.At the beginning of 2013,the Estimated Warranty Payable account had a credit balance of $1,200.During the year,Bike World had $295,000 of sales,and had to pay out $5,300 in warranty payments.How much Warranty Expense will be reported on the 2013 income statement?

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The Answer of Bike World Inc.offers warranties on all their bikes.They estimate warranty expense at 3.5% of sales.At the beginning of 2013,the Estimated Warranty Payable account had a credit balance of $1,200.During the year,Bike World had $295,000 of sales,and had to pay out $5,300 in warranty payments.How much Warranty Expense will be reported on the 2013 income statement?