Trail Runner guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be approximately 5% of sales. Assume that the Trail Runner dealer in Colorado Springs made cash sales totaling $600,000 during 2020. Warranty payments totaled $10,000 during 2020. Requirements 1. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold. Date Debit Credit Account and Explanation Cash Notes Receivable Sales Revenue To record sales 300,000 300,000 600,000 30,000 Warranty Expense (600,000 X 5%) Warranty Payable To record warranty expense 30,000 1 10,000 Warranty Payable Cash To record warranty paid 10,000 2. What is the liability for warranties at December 31, 2020 and where is it classified in the balance sheet