During August, Arena Company sells $351,000 in product that has a one year warranty. Experience shows that warranty expenses average...

During August, Arena Company sells $351,000 in product that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a balance of $11,300 before adjustment. Customers returned product for warranty repairs during the month that used $7,900 in parts for repairs. The entry to record the estimated warranty expense for the month is: