Great Motors 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 5% of sales. Assume that North Motors in Vaughan, Ontario, made sales of $1,700,000 on its midsize line during 2020. North received cash for 11% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totalled $70,000 during 2020. 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 $38,000. At the end of 2020, how much in estimated warranty payable does North owe its customers? 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. Explanations are not required.) Journal Entry Accounts Debit Credit Cash Estimated Warranty Payable Now, let's accrue Inventory Notes Payable Notes Receivable Sales Revenue Warranty Expense Debit Credit Next, we will record the payment of warranty expenses. Journal Entry Accounts Debit Credit nning balance was $38,000. At the end of 2020, how much in estimated warranty payable does North owe its customers? ?, post the entries, and calculate the ending balance of the Estimated Warranty Payable account. (Leave any unused cells blank.) 2. Post to the Estimated Warranty Pay: Accrual Select the appropriate descriptions, en Beginning balance Ending balance Estimated Warr Payment Sales