Catskills Corporation guarantees its snowmobiles for three years. Company experience indicates that warranty costs will add up to 5% of sales.
Assume that the Catskills dealer in Colorado Springs made sales totaling \($519,000\) during 2011. The company received cash for 20% of the sales and notes receivable for the remainder. Warranty payments totaled \($19,000\) during 2011.

Requirements
1. Record the sales, warranty expense, and warranty payments for the company.
2. Post to the Estimated warranty payable T-account. At the end of 2011, how much in Estimated warranty payable does the company owe?