DE11-6 Ford, the automaker. guarantees its automobiles for three years or 36.000 miles, whichever comes first. Suppose Ford's experience indicates that the company can expect war- ranty costs during the three-year period to add up to 5% of sales. Assume that Five Points Ford in Cincinnati made sales of Ford Escorts totaling $600,000 during 20X7. its first year of operations. The company received cash for 30% of the sales and notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $22,000 during 20X7. 1. Record the sales, warranty expense, and warranty payments for Five Points Ford. 2. Post to the Estimated Warranty Payable T-account. At the end of 20X7. how much in esti- mated warranty payable does Five Points Ford owe its customers? Why must the war- ranty payable amount be estimated?