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 3% of sales. Assume that a Happy Trails USA dealer in Denver, Colorado, made sales of $634,000 during 2018. Happy Trails USA received cash for 15% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $19,000 during 2018 Read the requirements. 1. Record the sales, warranty expense, and warranty payments for Happy Trails USA. (Record debits first, then credits. Exclude explanations from any journal entries.) First, let's record the sale of the tires. Journal Entry Accounts Debit Credit Cash 95,100 Notes Receivable 538,900 Sales Revenue 634,000 Requirements Now, let's accrue the warranty expense. Journal Entry Accounts Debit Credit 1. Record the sales, warranty expense, and warranty payments for Happy Trails USA. Ignore cost of goods sold. 2. Post to the Accrued Warranty Payable T-account. The beginning balance was $17,000. At the end of 2018, how much in accrued warranty payable does Happy Trails USA owe to its customers? 19,020 19,020 Warranty Expense Accrued Warranty Payable Accrued Warranty Payable Cash 19000 19000 Print Done