Trail Runner USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose Trail Runner USA can expect warranty costs during the five-year period to add up to 3% of sales. Assume that a ng Trail Runner USA dealer in Denver, Colorado, made sales of $635,000 during 2018. Trail Runner USA received cash for 35% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $19,000 during 2018. Read the requirements. Debit Credit Journal Entry Accounts Cash Notes Receivable Sales Revenue 222,250 412,750 635,000 Now, let's accrue the warranty expense Journal Entry Accounts Debit Credit 1. Record the sales, warranty expense, and warranty payments for Trail Runner USA. Ignore cost of goods sold. 2. Post to the Accrued Warranty Payable T-account. The beginning balance was $20,000. At the end of 2018, how much in accrued warranty payable does Trail Runner USA owe to its customers? Print Done Now, let's accrue the warranty expense. Journal Entry Accounts Debit Credit Accrued Warranty Payable Cash Notes Receivable Sales Revenue Choose from an Warranty Expense and then click Check