Green 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 3% of sales. Assume that Sierra Motors in Waterloo, Ontario, made sales of $2,200,000 on its performance line during 2020. Sierra received cash for 13% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totalled $60,000 during 2020. 1. Record the sales, warranty expense, and warranty payments for Sierra. Ignore any reimbursement that Sierra may receive from GM. 2. Post to the Estimated Warranty Payable T-account. The beginning balance was $45,000. At the end of 2020, how much in estimated warranty payable does Sierra owe its customers? 1. Record the sales, warranty expense, and warranty payments for Sierra. Ignore any reimbursement that Sierra 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 Now, let's accrue the warranty expense. Journal Entry Accounts Debit Credit Green 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 3% of sales. Assume that Sierra Motors in Waterloo, Ontario, made sales of $2,200,000 on its performance line during 2020. Sierra received cash for 13% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totalled $60,000 during 2020. 1. Record the sales, warranty expense, and warranty payments for Sierra. Ignore any reimbursement that Sierra may receive from GM. 2. Post to the Estimated Warranty Payable T-account. The beginning balance was $45,000. At the end of 2020, how much in estimated warranty payable does Sierra owe its customers? 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 $45,000. At the end of 2020, how much in estimated warranty payable does Sierra 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