1. The client warrants most products it sells against defects in materials and workmanship for a period of one year. Based on their experience with previous product introductions, warranty costs are expected to approximate 1.5% of sales. A warranty liability of $29 million was reported at December 31, 2022. Sales of warranted products during 2023 were $2,200 million and actual warranty expenditures were $35 million. Determine the appropriate means of reporting each situation and explain your reasoning. Include reference to and support from the FASB codification. Include any necessary journal entries if they are required to record the contingency and drafts of appropriate disclosure notes