Refer to the discussion of and excerpt from the Harley-Davidson, Inc. warranty reserve on page 7-9 to answer the following questions.

a. Using the financial statement effects template, record separately the accrual of warranty liability relating (1) to the "Warranties issued during the period" and (2) "Recalls and changes to preexisting warranty obligations" and (3) to the "Settlements made during the period."

b. Does the level of Harley-Davidson's warranty accrual appear to be reasonable?