USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose

GolliathGolliath

USA can expect warranty costs during the five-year period to add up to

4 %4%

of sales. Assume that a

GolliathGolliath

USA dealer in Denver, Colorado, made sales of

$ 525 comma 000$525,000

during

20212021.

GolliathGolliath

USA received cash for

4545%

of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled

$ 19 comma 600$19,600

during

20212021.

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requirements

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Part 1

1. Record the sales, warranty expense, and warranty payments for

GolliathGolliath

USA. (Record debits first, then credits. Exclude explanations from any journal entries.)

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

Journal Entry
	Accounts	Debit	Credit

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Requirements

1.	Record the sales, warranty expense, and warranty payments for GolliathGolliath USA. Ignore cost of goods sold.
2.	Post to the Accrued Warranty Payable T-account. The beginning balance was $ 19 comma 000$19,000. At the end of 20212021, how much in accrued warranty payable does GolliathGolliath USA owe to its customers?