Hipster Equipment guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be approximately $4\%$ of sales Assume that the Hipster Equipment dealer in Colorado Springs made sales totaling $$550,000$ during $2025.$ The company recelved cash for $30\%$ of the sales and notes receivable for the remainder. Warranty payments totaled $$15,000$ during $2025$

Read the requirements.

entry tadie.,

Begin with the entry to record the sales. $($Prepare a single compound entry for this transaction$)$

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[2025,$Cash,$165,000,],[$Notes Receivable,$385,000,],[$Sales Revenue,,$550,000],[$To record sales for $2025,,]]$

Record the warranty expense.

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[2025,$Warranty Expense,$15000,],[$Estimated Warranty Payable,,$15000],[,,],[$Warranty payments.,,$]]$