[198516]

Trekster USA guarantees automobiles against defects for five years or a total of 55,000 miles, whichever comes first. Suppose trekster USA expect warranty costs to add up to 6% of sales. Assume that Trekster USa dealer in Atlanta, Georgia, made sales of $483,000 during 2010. Trekster USA received cash for 30% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled $19,000 during 2010.

Journalize the sales
Journalize warranty expense
Jouranlize warranty payments for Trekster USA

Post to the estimated warranty payable T-Account so that it shows how much in estimated warranty payable Trekster owe to its customer at the end of 2010. The beginning balance was $11,000

Refer to information above
What amount of warranty expense will trekster Usa report during 2010
Which accounting principle adresses this situation?
Does warranty expense for the year equal the year's cash payments for warranties? Why or why not?