GladiatorGladiator $$USA$,$ a tire$$ manufacturer, guarantees its tires against defects for five years or$60,000$ miles, whichever comes first. Suppose GladiatorGladiator USA can expect warranty costs during the$$ five$-$year period to add up to $5\%5\%$ of sales. Assume that a GladiatorGladiator USA dealer in$$ Denver, Colorado, made sales of $ $669$ comma $000$$$669,000$ during $20212021.$ GladiatorGladiator USA received cash for $1515\%$ of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $ $19$ comma $700$$$19,700$ during $20212021.$

Read the requirements LOADING... $.$

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Part $1$

$1.$ Record the$$ sales, warranty$$ expense, and warranty payments for GladiatorGladiator 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

Part $2$

$$Now$,$ let's accrue the warranty expense.

Journal Entry

Accounts

Debit

Credit

Part $3$

$$Next$,$ we will record the payment of warranty expenses.

Journal Entry

Accounts

Debit

Credit

$2.$ Post to the Accrued Warranty Payable$$ T$-$account. The beginning balance was $ $12$ comma $000$$$12,000.$ At the end of $20212021,$ how much in accrued warranty payable does GladiatorGladiator 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

Part $5$

At the end of $2021,$ Gladiator USA owes

to its customers from Accrued Warranty Payable.