Great Machines Limited guarantees automobiles against defects for five years or 160,000 km, whichever comes first. Suppose GM can expect warranty costs during the five-year period to add up to 3% of sales. Assume that Best Motors in Kingston, Ontario, made sales of $2,000,000 on its off road line during 2017. Best received cash for 10% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totalled $55,000 during 2017 1. Record the sales, warranty expense, and warranty payments for Best. Ignore any reimbursement that Best may receive from GM. 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 Best owe its customers? 1. Record the sales, warranty expense, and warranty payments for Best. Ignore any reimbursement that Best may receive from GM. 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 Choose from any list or enter any number in the input fields and then continue to the next question. 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 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 Best 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