General Motors of Canada Limited guarantees automobiles against defects for five years or 160.000 km, whichever comes first. Suppose GM Canada can expect warranty costs during the five-year period to add up to 6% of sales Assume that Ridge Runner Motors in Vaughan, Ontario, made sales of $1,700,000 on its passenger line during 2017. Ridge Runner received cash for 8% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totalled $65,000 during 2017 1. Record the sales, warranty expense, and warranty payments for Ridge Runner. Ignore any reimbursement that Ridge Runner may receive from GM Canada 2. Post to the Estimated Warranty Payable T-account. The beginning balance was $35,000. At the end of 2017. how much in estimated warranty payable does Ridge Runner owe its customers? 1. Record the sales, warranty expense, and warranty payments for Ridge Runner. Ignore any reimbursement that Ridge Runner may receive from GM Canada First, let's record the sale of automobiles (Record debits first, then credits. Explanations are not required.) Journal Entry Accounts Debit Credit Cash Estimated Warranty Payable Inventory Now, let's accrue Notes Payable Notes Receivable Sales Revenue Warranty Expense Debit Credit Journal Entry Accounts Debit Credit 2. Post to the Estimated Warranty Payable T-account. The beginning balance was $35.000. At the end of 2017, how much in estimated warranty payable does Ridge Runner owe its customers? Select the appropriate descriptions, enter the beginning balance, post the entries, and calculate the ending balance of the Estimated Warranty Payable account (Leave any unused cells blank.) Estimated Warranty Payable