Question: FRD Inc. sells vehicles with multi-year warranties which it records in one Warranty Payable account. At January 1, 2024, the beginning balance in the Warranty Payable account was $600,000. Vehicles sales during 2024 were $10,750,000 and warranty costs were estimated at 3% of sales. During 2024, $278,000 of claims were paid. On December 31, 2024 what is the ending balance in Warranty Payable? 600,000 322,500 555,500 644,500