Mr. Gold, Inc. has sold products to Twinkle Jewelers, a retailer, which sold the products to customers. The manufacturers warranty offers replacement of the product if it is found to be defective within 90 days of the sale to the consumer. Historically, 0.06% of the products are returned for replacement.

Identify if the following independent situations should be (a) recorded in the financial statements, (b) disclosed in a footnote in the financial statements, or (c) neither.