Gladiator USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose Gladiator USA can expect warranty costs during the five-year period to add up to 4% of sales. Assume that a Gladiator USA dealer in Denver, Colorado, made sales of $699,000 during 2018. Gladiator USA received cash for 40% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $18,800 during 2018. Read the requirements. 1. Record the sales, warranty expense, and warranty payments for Gladiator 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 Now, let's accrue the warranty expense. Journal Entry Accounts Debit Credit Next, we will record the payment of warranty expenses. Journal Entry Accounts Debit Credit 1 2. Post to the Accrued Warranty Payable T-account. The beginning balance was $13,000. At the end of 2018, how much in accrued warranty payable does Gladiator USA owe to its customers? Select the appropriate descriptions, and enter the beginning balance and post the entries to the Accrued Warranty Payable T-account. Calculate the balance of the liability account. Accrued Warranty Payable At the end of 2018, Gladiator USA owes $ to its customers from Accrued Warranty Payable. i Requirements 1. Record the sales, warranty expense, and warranty payments for Gladiator 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 2018, how much in accrued warranty payable does Gladiator USA owe to its customers? Print Done