Valley Trails USA, a tire manufacturer, guarantees its tires against defects for five years or $60,000$ miles, whichever comes first. Suppose Valley Trails USA can expect warranty costs during

the five$-$year period to add up to $7\%$ of sales. Assume that a Valley Trails USA dealer in Denver, Colorado, made sales of $$457,000$ during $2021.$ Valley Trails USA received cash for $40\%$ of the

sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $$19,100$ during $2021.$

Read the requirements.

Record the sales, warranty expense, and warranty payments for Valley Trails USA. $($Record debits first, then credits. Exclude explanations from any journal entries.$)$

First, let's record the sale of the tires.

Journal Entry

Accounts

Requirements

Record the sales, warranty expense, and warranty payments for Valley Trails

USA. Ignore cost of goods sold.

Post to the Accrued Warranty Payable T$-$account. The beginning balance was

$$16,000.$ At the end of $2021,$ how much in accrued warranty payable does

Valley Trails USA owe to its customers?