[jenlee]

Accounting for warranty expense and estimated warranty payable:

Treskter USA guarantees automobiles against defects for (5) years or (55,000) miles, whichever comes first. Suppose Treskter USA can expect warranty cost during the (5) years period to add up to (6%) of the sales, Assume that Trekster USA dealer in Atlanta, Gergia, made sales of ($483,00) during 2010.

Treskter USA received cash of (30%) of the sales and took notes payable for the remainder. Payments to satisfy customer warranty claims totaled ($19,000) during 2010.

Record the sales, warranty expense, and warranty payments for Treskter USA.
Post to the Estimated Warranty Payable T-Account. The beginning balance was ($11,000). At the end of 2010, how much in estimated warranty payable does Treskter USA owe to its customers?
This is what I have for answers:

Sales= 483,000 x 0.6% = 2898.00 then over the 5 year period it would be 579.60 per year.

But not sure how to get the 30% of sales of notes payable

[paraclete]

You were told the Sales were $483.000 and cash was 30% therefore 483,000*0.7 so credit sales and debit the other two accounts