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Not sure how to answer this question, plz help! The accounting records of Earth Gadgets showed a balance of $10,000 in Estimated warranty payable at

Not sure how to answer this question, plz help! image text in transcribed
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The accounting records of Earth Gadgets showed a balance of $10,000 in Estimated warranty payable at December 31, 2017. In the past. Earth Gadgets' warranty expense has been 5.5 percent of sales. During 2018, Earth Gadgets made sales of $307,000 on account and paid $7,000 to satisfy warranty claims. Read the requirements Requirement 1. Journalize Earth Gadgets' sales, warranty expense, and cash payments made to satisfy warranty clairs during 2018. Explanations are not required. Ignore cost of goods sold. (Record debits first, then credits. Exclude explanations from any journal entries.) Journalize Earth Gadgets' sales. Ignore cost of goods sold. Journal Entry Accounts Debit Credit Journalize the warranty expense Journal Entry Accounts Debit Credit Journalize the warranty payments Journal Entry Accounts Date Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Requirement 2. What balance of Estimated warranty payable will Earth Gadgets report on its balance sheet at December 31, 2018? What amount of warranty expense will Earth Gadgets report on its income statement for the year ended December 31, 2018? Use the T-account to determine the ending balance for the Estimated warranty payable account that Earth Gadgets will report on its balance sheet at December 31, 2018. Select the appropriate description as a posting reference for each amount you enter into the T-account Estimated warranty payable Beg bal 10,000 What amount of warranty expense will Earth Gadgets report on its income statement for the year ended December 31, 2018? The company will reports of warranty expense on its income statement

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