Global Motors Limited guarantees automobiles against defects for five years or 160,000km, whichever comes first. Suppose GM can expect warranty costs during the five-year period to add up to 7% of sales. Assume that North Motors in Hamilton, Ontario, made sales of $1,800,000 on its performance line during 20XX. North received cash for 9% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totalled $60,000 during 20XX. Requirement 1. Record the sales, warranty expense, and warranty payments for North. Ignore any reimbursement that North may receive from GM. First, let's record the sale of automobiles. (Record debits first, then credits. Exclude explanations from journal entries.) Now, let's accrue the warranty expense. (Record debits first, then credits. Exclude explanations from journal entries.) Required 1. Record the sales, warranty expense, and warranty payments for North. Ignore any reimbursement that North may receive from GM. 2. Post to the Estimated Warranty Payable T-account. The beginning balance was $39,000. At the end of 20XX, how much in estimated warranty payable does North owe its customers? 3. What amount of warranty expense will North report during 20XX? Does the warranty expense for the year equal the year's cash payments for warranties? Explain the relevant accounting principle as it applies to measuring warranty expense. Next, we will record the payment of warranty expenses. (Record debits first, then credits. Exclude explanations from journal entries.) Requirement 2. Post to the Estimated Warranty Payable T-account. The beginning balance was $39,000. At the end of 20XX, how much in estimated warranty payable does North 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. (If an input field is not used in the T-account, leave the input field empty; do not select a label or enter a zero.) Requirement 3. What amount of warranty expense will North report during 20XX? Does the warranty expense for the year equal the year's cash payments for warranties? Explain the relevant accounting principle as it applies to measuring warranty expense. Warranty expense North Motors will report for 20XX: The warranty expense for the year the year's cash payments for warranties. Cash payments for warranties s accounting principle is the the amount of warranty expense for that year. The warranty expense during the period. The relevant