Question Help tires against defects for five years or 60,000 miles, whichever co

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Question Help tires against defects for five years or 60,000 miles, whichever comes first Suppose Trekster USA can expect warranty costs during the & S9-3 (similar to) Trekster USA five-year pe d to add up to 5% of sales. Assume that a Trekster USA dealer in St. Paul Minnesota, made sales of $596 000 during 2016. Trekstor USA received cash for 20% of the sales and took notes receivable for the remainder Payments to satisfy customer warranty claims totaled $20,000 during 2016. 1. Record the sales, warranty expense, and warranty payments for Trekster USA 2. Post to the Estimated Warranty Payable T-account. The beginning balance was $17,000. At the end of 2016, how much in estimated warranty payable does Trekster USA owe to its customers? 20,000 Cash 20,000 Varranty Payable T-account. The beginning balance was $17,000. At the end of 2016, how much in estimated warranty payable does ustomers? Accrual Beginning balance Ending balance Payment scriptions, and enter the beginning balance and post the entries to the Estimated Warranty Payable T-account. Calculate the balance of the 17,000 29,800 26,800 Choose from any list or enter any number in the input fields and then click Check Answer. All parts showing Clear All

Explanation / Answer

1)

b)

Date Account debit credit 1 cash (596000*.20] 119200 note receivable 476800 sales revenue 596000 [Being sales receorded] 2 Warranty expense 29800 warranty payable [596000*.05] 29800 [warranty liability recorded] 3 warranty liability 20000 cash 20000

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