Calculate warranty provision as of December $31,20$X$1$ and December $31,20$X$2.$ What is the impact on profit and loss account regarding warranties in $20$X$1$ and $20$X$2?$Daylight sold products for $120,000$ EUR in $20$X$1.$ At the end of $20$X$1,25,000$ EUR was unpaid, out of which $8,000$ EUR was overdue, out of which $4,000$ EUR was overdue for more than $120$ daysDuring $20$X$2,$ one customer went into liquidation and the Daylight's receivable of $3,000$ EUR

was left finally unpaid and needed to be written off.

During $20$X$2,$ Daylight sold products for $150,000$ EUR. At the end of $20$X$2,30,000$ EUR was umpaid, out of which $10,000$ EUR was overdue, out of which $3,000$ EUR was overdue for more than $120$ days.

Daylight expects that the future costs of warranty repairs will be approximately $1\%$ of annual sales. The warranty period is $1$ year and costs of repairs related to $20$X$1$ sales incurred already during $20$X$1$ were $500$ EUR. Costs of repairs related to $20$X$1$ sales incurred during $20$X$2$ were

$600$ EUR and costs of repairs related to $20$X$2$ sales incurred already during $20$X$2$ were $800$ EUR.

Task II: Alternatively consider that costs of repairs related to $20$X$1$ sales incurred during $20$X$2$ were $800$ EUR $($instead of $600$ EUR$)..$