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kecording and Analyzing Warranty Accrual and Payment Refer to the excerpt from the Harley-Davidson inc. warranty reserve financial statement disclosure provided to answer the questions

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kecording and Analyzing Warranty Accrual and Payment Refer to the excerpt from the Harley-Davidson inc. warranty reserve financial statement disclosure provided to answer the questions that follow. Product Warranty and Recall The Company currently provides a standard twoyear limded warraniy on all new motorcycles sold woridwide, except for Japan where the Compuny provides a standard threcyear lmited warranty on all new motorcycles sold. in addition, the Cornpary offers a one-year warranty for Parts \& Accessories (P BAl). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future wairanty clams using an estimated cour based primanly on hotorical Company claim information. Additionally, the Company has from time-to-time intiated certaln voluntary recall campaigns. The Compary acerues for the esornated cost associated with voluntary recalls in the period that management approves and commits to the recall Changes in the Comparys warranty and recall liabilsy were as folows (in thousands) Mequired changes to preexisting warrarty obligations:" and (3) 'Sectlenents made during the penod" Required Using the financial statement effects template, record separately the 2018 warranty liability transactions relating to the (1) "Warranties issued during the period, "(2) "Recalls and changes to preexisting warranty obligations," and (3) "Settlements made during the period," Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. (\$ 000s) Please answer all parts of the questoo. Pecoriling and Analyzing Warranty Accrual and Payment Refer to the excerpt from the Harley-Davidson inc. warranty reserve financial stavenent disclosure provided to answer the questions that follow, Froduct Warranty and Recall The Company eurreetly provibes a standard two-year limited warranty on all new motorcydes sold woeldwide, except for lapart where the Compan provides a standatd three-year limited warranty on all new motorcycles sold. In addition, the Compory offers a oneyear warranty far Parts 3 Acoessories iPla, The warranty covera the retail cistomer generaly begins when the prodict is sold to a recal costorner. The Company aconves for future warranty claims using an estmated cost baced primarly on hatog Compary claim information. Additionaly, the Compary has from tme-to-ime initiated certain voluntary recall campaigna. The Comparty aconuts for the estimated cout associaced his vokintary recalis in the period that management approves and commits to the recall. Changes in the Compary's warranty and recal lisblity were as follows in thactand14 The 1iabilicy associated with recalls was 571,8 million, 534.6 millon, and 513.3 milion at December 31,2018 , 2017. and 2016, reipecthrey. Using the financial statement elfects template, record separately the 2018 warranty labilty trantsictions telating to the [1] "Warranties issued dunne the period, (2) "Hecalis and dian Required to preesisting warranty obligations," and (B) Sectiements made during the period." Note: For each account category, indicate the appeopriate accourt name. Cnter "N/A- for any acoount category that is not used for a gven traroacton. Note: ind cate a decrease in an account category by including a negative sign w th the amount. Required to preipisting warranty obligatens," and (3) "Setilements mude duricg the period." Note: For each account casegory, indicate the appropriate account neme. Encer "Nk" for any account category that is not used for a giren wastaction. Note: indicate a decrease in an account category by inchoding a negative sign with the amount. Piease answer al parts of the question. kecording and Analyzing Warranty Accrual and Payment Refer to the excerpt from the Harley-Davidson inc. warranty reserve financial statement disclosure provided to answer the questions that follow. Product Warranty and Recall The Company currently provides a standard twoyear limded warraniy on all new motorcycles sold woridwide, except for Japan where the Compuny provides a standard threcyear lmited warranty on all new motorcycles sold. in addition, the Cornpary offers a one-year warranty for Parts \& Accessories (P BAl). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future wairanty clams using an estimated cour based primanly on hotorical Company claim information. Additionally, the Company has from time-to-time intiated certaln voluntary recall campaigns. The Compary acerues for the esornated cost associated with voluntary recalls in the period that management approves and commits to the recall Changes in the Comparys warranty and recall liabilsy were as folows (in thousands) Mequired changes to preexisting warrarty obligations:" and (3) 'Sectlenents made during the penod" Required Using the financial statement effects template, record separately the 2018 warranty liability transactions relating to the (1) "Warranties issued during the period, "(2) "Recalls and changes to preexisting warranty obligations," and (3) "Settlements made during the period," Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. (\$ 000s) Please answer all parts of the questoo. Pecoriling and Analyzing Warranty Accrual and Payment Refer to the excerpt from the Harley-Davidson inc. warranty reserve financial stavenent disclosure provided to answer the questions that follow, Froduct Warranty and Recall The Company eurreetly provibes a standard two-year limited warranty on all new motorcydes sold woeldwide, except for lapart where the Compan provides a standatd three-year limited warranty on all new motorcycles sold. In addition, the Compory offers a oneyear warranty far Parts 3 Acoessories iPla, The warranty covera the retail cistomer generaly begins when the prodict is sold to a recal costorner. The Company aconves for future warranty claims using an estmated cost baced primarly on hatog Compary claim information. Additionaly, the Compary has from tme-to-ime initiated certain voluntary recall campaigna. The Comparty aconuts for the estimated cout associaced his vokintary recalis in the period that management approves and commits to the recall. Changes in the Compary's warranty and recal lisblity were as follows in thactand14 The 1iabilicy associated with recalls was 571,8 million, 534.6 millon, and 513.3 milion at December 31,2018 , 2017. and 2016, reipecthrey. Using the financial statement elfects template, record separately the 2018 warranty labilty trantsictions telating to the [1] "Warranties issued dunne the period, (2) "Hecalis and dian Required to preesisting warranty obligations," and (B) Sectiements made during the period." Note: For each account category, indicate the appeopriate accourt name. Cnter "N/A- for any acoount category that is not used for a gven traroacton. Note: ind cate a decrease in an account category by including a negative sign w th the amount. Required to preipisting warranty obligatens," and (3) "Setilements mude duricg the period." Note: For each account casegory, indicate the appropriate account neme. Encer "Nk" for any account category that is not used for a giren wastaction. Note: indicate a decrease in an account category by inchoding a negative sign with the amount. Piease answer al parts of the

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