Question 5 hw

Hipster guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be approximately 3% of sales. Assume that the Hipster dealer in Colorado Springs made sales totaling $800,000 during 2024 . The company received cash for 50% of the sales and notes receivable for the remainder. Warranty payments totaled $15,000 during 2024. Read the requirements. Requirements 1. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold. 2. Assume the Estimated Warranty Payable is $0 on January 1, 2024. Post the 2024 transactions to the Estimated Warranty Payable T-account. At the end of 2024 , how much in Estimated Warranty Payable does the company owe? Requirement 1. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin with the entry to record the sales. (Prepare a single compound entry for this transaction.) Record the warranty expense. Record the warranty payments for the company. Requirement 1. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table.) Begin with the entry to record the sales. (Prepare a single compound entry for this transaction.) Record the warranty payments for the company. Requirement 1. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin with the entry to record the sales. (Prepare a single compound entry for this transaction.) Recol Date 2024 Record the warranty payments for the company. Requirement 2. Assume the Estimated Warranty Payable is $0 on January 1, 2024. Post the 2024 transactions to the Estimated Warranty Payable T-account. At the end of 2024, how much in Estimated Warranty Payable does the company owe? Use the T-account to determine the ending balance for the Estimated Warranty Payable account. Use a "Beg. Bal." posting reference to show the beginning balance of the account and an "End. Bal." posting reference to show the ending balance of the account. (Enter a " 0 " for any zero amounts.)