Happy Trails USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose Happy Trails USA can expect warranty costs during the five-year period to add up to 6% of sales. Assume that a Happy Trails USA dealer in Denver, Colorado, made sales of $632,000 during 2018. Happy Trails USA received cash for 30% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $20,900 during 2018 Read the requirements a. What amount of warranty expense will Happy Trails USA report during 2018? Happy Trails will report warranty expense of during 2018