Need some help with these problems please.

QUESTION 1:

Aqua Boats guarantees its boats for three years or 1,600 hours, whichever comes first. Industry experience indicates that Aqua can expect warranty costs will equal 6 percent of sales. Assume in its first year, Aqua Boats had sales totaling S4S8,000, receiving cash for 57 percent of sales and notes receivable for the remainder Warranty payments totaled Sl 7,100 during the year. Read the requirements. Requirement 1. Record the sales, warranty expense, and warranty payments for Aqua Boats Ignore cost of goods sold. (Record debits first, then credits. Exclude explanations from any joumal entries.) Start by recording the sales. Date Journal Entry Accounts Debit Credit 2. 3. Requirements Record the sales, warranty expense, and warranty payments for Aqua 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 Aqua owe its customers? What amount of warranty expense will Aqua 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? print Done