Question
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
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 two-year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company provides a standard three-year limited warranty on all new motorcycles sold. In addition, the Company offers a one-year warranty for Parts & Accessories (P&A). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future warranty claims using an estimated cost based primarily on historical Company claim information. Additionally, the Company has from time-to-time initiated certain voluntary recall campaigns. The Company accrues for the estimated cost associated with voluntary recalls in the period that management approves and commits to the recall. Changes in the Companys warranty and recall liability were as follows (in thousands):
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)
\\begin{tabular}{|l|r|r|r|} \\hline & \\( \\mathbf{2 0 1 8} \\) & \\multicolumn{1}{|c|}{\\( \\mathbf{2 0 1 7} \\)} & \\multicolumn{2}{c|}{\\( \\mathbf{2 0 1 6} \\)} \\\\ \\hline Balance, beginning of period & \\( \\$ 98,910 \\) & \\( \\$ 83,456 \\) & \\( \\$ 77,928 \\) \\\\ \\hline Warranties issued during the period & 56,035 & 60,726 & 63,226 \\\\ \\hline Settlements made during the period & \\( (83,265) \\) & \\( (86,682) \\) & \\( (104,263) \\) \\\\ \\hline Recalls and changes to pre-existing warranty liabilities & 66,647 & 41,410 & 46,565 \\\\ \\hline Balance, end of period & \\( \\$ 138,327 \\) & \\( \\$ 98,910 \\) & \\( \\$ 83,456 \\) \\\\ \\hline \\hline \\end{tabular} The liability associated with recalls was \\( \\$ 77.0 \\) million, \\( \\$ 37.1 \\) million, and \\( \\$ 14.3 \\) million at December \\( 31,2018,2017 \\), and 2016 , respectively. Please answer all parts of the
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