Aqua Boats guarantees its boats for three years or 1,500 hours, whichever comes first. Industry experience indicates that Aqua can expect warranty costs will equal 4 percent of sales. Assume in its first year, Aqua Boats had sales totaling $477,000, receiving cash for 63 percent of sales and notes receivable for the remainder. Warranty payments totaled $16,200 during the year Read the Requirement 1. Record the sales, warranty expense, and warranty payments for Aqua Boats. Ignore cost of goods sold. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording the sales. Journal Entry Date Accounts Debit Credit