Tires USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose Tires USA can expect warranty costs during the five-year period to add up to 5% of sales. Assume that a Tires USA dealer in Denver, Colorado, made sales of $630,000 during 2018. Tires USA received cash for 20% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $19,500 during 2018. Read the requirements 1. Record warranty expense, and warranty payments for Tires USA. (Record debits first, then credits. Exclude explanations from any journal entries.) First let's accrue the warranty expense. Journal Entry Accounts Debit Credit Next, we will record the payment of warranty expenses. Journal Entry Accounts Debit Credit 2. Post to the Accrued Warranty Payable T-account. The beginning balance was $18,000. At the end of 2018, how much in accrued warranty payable does Tires USA owe to its customers? Calculate the balance of the liability account. At the end of 2018, Tires USA owes $ to its customers from Accrued Warranty Payable.