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Trekster USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose Trekster USA can expect
Trekster USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose Trekster USA can expect warranty costs during the five-year period to add up to 4% of sales. Assume that a Trekster USA dealer in Denver, Colorado, made sales of $483,000 during 2021. Trekster USA received cash for 15% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $19,100 during 2021. Read the requirements. Next, we will record the payment of warranty expenses. Journal Entry Accounts Accrued Warranty Payable Cash Debit Credit 19,100 19,100 2. Post to the Accrued Warranty Payable T-account. The beginning balance was $10,000. At the end of 2021, how much in accrued warranty payable does Trekster USA owe to its customers? Select the appropriate descriptions, and enter the beginning balance and post the entries to the Accrued Warranty Payable T-account. Calculate the balance of the liability account. Accrued Warranty Payable
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