Ridge Runner USA, a tire manufacturer, guarantees its tires against defects for five years or $60,000$ miles, whichever comes first. S$$ppose Ridge Runner USA can expect warranty costs during the five$-$year period to add up to $4\%$ of sales. Assume that a Ridge Runner USA dealer in Denver, Colorado, made sales of $$487,000$ during $2021.$ Ridge Runner USA received cash for $10\%$ of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $$19,100$ during $2021.$

Requirements

a$.$ What amount of warranty expense will Ridge Runner USA report during $2021?$

b$.$ Which accounting principle addresses this situation? $($Cost principle, expense recognition$($matching$)$ principle, objectivity characteristic, or revenue$-$recognition principle$)$

c$.$ Does the warranty expense for the year equal the year's cash payments for warranties?

d$.$ Explain the relevant accounting principle as it applies to measuring warranty expense.