Innovations, Inc. sells widgets with a warranty under which customers are covered for the cost of repairs of any manufacturing Innovationsects that become apparent within the first six months after purchase. Hint: this problem may require FASB Codification research.
Required:
a)	Innovations, Inc. estimates that if Innovationsects were detected in all products sold, repair costs would range from:
	Low end of range	$2,000,000	Minor repairs
	High end of range	$4,000,000	Major repairs
	Assume no particular outcome within the range of $2 to $4 million is better than another. Prepare the required journal entry.
b)	Using the same facts from part a) above, assume Innovations, Inc. performs an analysis on the historical data of returns and estimates (based on historical data) finding that:
		Estimated to be:
	Goods sold with no defects	75%	of all goods sold