BOB Berhad is a computer manufacturer in Klang. The computers produced by this company are widely sold in many countries in the world and the company is well known for the quality of its product. The company provides warranty claims for all defective parts within 5 years of sales. Based on past statistics, on average about 10% of the computers sold give rise to warranty claims. For the past 5 years, the average sales per annum for the company is 1 million units and the average cost of rectification per unit is RM100.

Required: Discuss the accounting treatment for the year ended 31 December 2020