Marina Boats guarantees its boats for three years or 1,500 hours, whichever comes first. Industry experience indicates that Marina can expect warranty costs will equal 7 percent of sales. Assume in its first year, Marina Boats had sales totaling $501,000, receiving cash for 33 percent of sales and notes receivable for the remainder. Warranty payments totaled $19,300 during the year. Read the requirements Requirement 1. Record the sales, warranty expense, and warranty payments for Marina Boats. Ignore cost of goods sold. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording the sales. Requirements Journal Entry Date Accounts Debit Credit 1. Record the sales, warranty expense, and warranty payments for Marina Boats. Ignore cost of goods sold. Post relevant portions of the journal entries to the Estimated warranty payable T-account. At the end of the first year, how much in estimated warranty payable does Marina owe its customers? What amount of warranty expense will Marina report during its first year of operations? Does the warranty expense for the year equal the year's cash payments for warranties? Which accounting principle addresses this situation? 2. 3. Choose from any list or enter any number in the input fields and then click Check Answer. Print Done