ACC 231 Uses of Accounting Information | Summer A 2022 HW Score: Homework: HW #8 Question 4, S8-6 (similar to) 30%, 3 of 10 points Save Part 1 of 5 Points: 0 of 1 Ridge Runner USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose Ridge Runner USA can expect warranty costs during the five-year period to add up to 5% of sales. Assume that a Ridge Runner USA dealer in Denver, Colorado, made sales of $629,000 during 2021. Ridge Runner USA received cash for 25% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $19,100 during 2021. Read the requirements. 1. Record the sales, warranty expense, and warranty payments for Ridge Runner USA. (Record debits first, then credits. Exclude explanations from any journal entries) First, let's record the sale of the tires. Journal Entry Accounts Debit Credit 157250 Accrued Warranty Payable Cash Notes Receivable Sales Revenue Warranty Expense Requirements 1. Record the sales, warranty expense, and warranty payments for Ridge Runner USA. Ignore cost of goods sold. 2. Post to the Accrued Warranty Payable T-account. The beginning balance was $13,000. At the end of 2021, how much in accrued warranty payable does Ridge Runner USA owe to its customers?" Print Donel wer