General Motors provides a 3-year warranty on all the cars it sells. In 2022, GM sold 3 million cars. The average warranty cost per vehicle over the warranty period is estimated to be $150.

-What is the journal entry to record the warranty expense? When should it be reported?

-What distortion would occur in the financial statements if GM failed to record this expense?

- How should GM report the actual cost of providing the warranty service? (That is, what accounts should be debited or credited?)