Interpreting Warranty Liability Disclosures (FSET) The following disclosures were provided by Sundry Inc. in its 2020 annual report: Product-related expenses Provisions for estimated costs related to product warranties are recorded in line item Cost of sales at the time the related sale is recognized. Note 18 Provisions * The company rounds amounts, and thus, they may not exactly sum to totals and subtotals. -Note: Use negative signs with your answers, when appropriate. -Note: Select "N/A" as your answer if a part of the accounting equation is not affected. c. "Reversals" are corrections of previous estimates of warranty obligations. Why would it be useful to report reversals separately from additions? d. The company reported sales revenue of 51,425 million in 2020 and 52,635 in 2019 . Calculate the ratio of warranty expense to sales for each year. \begin{tabular}{|c|c|c|c|c|c|} \hline & Numerator & I & Denominator & = & Ratio \\ \hline 2020 & 0 & I & 0 & = & % \\ \hline 2019 & 0 & I & 0 & = & % \\ \hline \end{tabular}