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I need help ( This is a different question from the other i posted) Cheerolet Canada guarantees vehicles against defects for five years or 180,000km
I need help ( This is a different question from the other i posted)
Cheerolet Canada guarantees vehicles against defects for five years or 180,000km whichever comes first. Suppose Cheerolet can expect warranty costs during this period to add up to 2.25% of sales. Assume that a local car dealership, Cheer-Guelph, made sales of $4,700,000 on their hybrid car line during 2021. Cheer-Guelph received cash for 22% of the sales and sells the rest on account. Payments to satisfy customer warranty claims totaled $87,000 during 2021 . The beginning balance of the Estimated Warranty Payable account is zero. Requirement 1: Record the sales transaction (ignore CoGS/Inventory), warranty expense (using the Estimated Warranty Payable Account), and warranty payments for Cheer-Guelph. Ignore any reimbursement that Cheer-Guelph may receive from Cheerolet Canada. After submitting the online exam, upload the journal entries to the dropbox. Requirement 2: Please fill out the blanks below. Required format for entering numbers: enter plain amounts, no $-signs or commas. Requirement 1: Record the sales transaction (ignore CoGS/Inventory), warranty expense (using the Estimated Warranty Payable Account), and warranty payments for Cheer-Guelph. Ignore any reimbursement that Cheer-Guelph may receive from Cheerolet Canada. After submitting the online exam, upload the journal entries to the dropbox. Requirement 2: Please fill out the blanks below. Required format for entering numbers: enter plain amounts, no $-signs or commas. Round final results to total $-amounts. Blank \#1: What \$-amount did Cheer-Guelph record as Warranty Expense? Blank \#2: What \$-amount did Cheer-Guelph pay out to customers (Cash)? Blank \#3: What is the ending balance of the Estimated Warranty Payable account (\$amount)? Blank \# 1 Blank \# 2 Blank \# 3 Step by Step Solution
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