Bombardier Inc. specializes in manufacturing transportation products (aircraft, railway equipment, snowmobiles, and watercraft). The company offers warranties on all of its products. Note 2 to Bombardier's financial statements for fiscal year 2015 stated the following: Product warranties typically range from one to five years, except for aircraft and bogie structural warranties that extend up to 20 years. Selected information from Bombardier's annual reports follows (amounts in millions of U.S. dollars): Revenues Provision for product warranties at year-end 2015 2014 2013 17,068 18,647 18,192 1,026 1,133 1,180 During fiscal year 2015, Bombardier paid $425 million to customers in exchange for returned products under the warranty. Required: 1. Compute the amount of warranty expense for fiscal year 2015. (Enter your answer in millions of dollars.) Warranty expense 2. Prepare journal entries to record both the warranty expense for the year and the payments made under the warranty. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions of dollars.) View transaction list Journal entry worksheet 1 2 > Record payments to customers in exchange for returned products. Note: Enter debits before credits. Transaction ral Journal Credit 1 Record entry Clear entry View general journal 3-a. Compute the ratio of the warranty liability to revenues for the three years. (Round percentage answers to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) 2015 2014 2013 Provision for Product Warranties/Revenues % % % 3-b. Has the ratio increased or decreased during the three-year period? The ratio from 2013 to 2014, and from 2014 to 2015. 4. Based on the limited information available about the warranty expense and payments in 2015, should Bombardier increase the balance of the warranty liability in future years? Yes No