3. The accounting records of Wheel Ems showed a balance of $7,000 in Estimated warranty payable at December 31, 2017. In the past, Wheel Ems' warranty expense has been 2 percent of sales. During 2018, Wheel Ems made sales of $471,000 on account and paid $5,000 to satisfy warranty claims. Read the requirements Requirement 1. Journalize Wheel Ems' sales, warranty expense, and cash payments made to satisfy warranty claims during 2018. Explanations are not required. Ignore cost of goods sold. (Record debits first, then credits. Exclude explanations from any journal entries.) Journalize Wheel Ems' sales. Ignore cost of goods sold. Journal Entry Date Accounts Debit Credit (4) Journalize the warranty expense. Journal Entry Date Accounts Debit Credit Journalize the warranty payments. Journal Entry Date Accounts Debit Credit (9) (10) (11) (12) Screens! Requirement 2. What balance of Estimated warranty payable will Wheel Ems report on its balance sheet at December 31, 2018? What amount of warranty expense will Wheel Ems report on its income statement for the year ended December 31, 2018? Use the T-account to determine the ending balance for the Estimated warranty payable account that Wheel Ems will report on its balance sheet at December 31, 2018. Select the appropriate description as a posting reference for each amount you enter into the T-account. Estimated warranty payable 7,000 (13) Beg bal (14) |(16) (15) N N https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 5/33 5/8/2020 Chapter 9 Homework-SEBASTIAN KOHLHAAS What amount of warranty expense will Wheel Ems report on its income statement for the year ended December 31, 2018? The company will report $ of warranty expense on its income statement. 2: Requirements 1. Journalize Wheel Ems' sales, warranty expense, and cash payments made to satisfy warranty claims during 2018. Explanations are not required. Ignore cost of goods sold. 2. What balance of Estimated warranty payable will Wheel Ems report on its balance sheet at December 31, 2018? What amount of warranty expense will Wheel Ems report on its income statement for the year ended December 31, 2018