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Problem 10-4A Determining the effects of various liabilities on financial statements LO1,4 Part 1: Okanagan Refrigeration manufactures and markets commercial refrigeration systems for food true and specialized transport trucks. It was disclosed in notes to the company's financial statements that timated warranty costs are accrued at the time products are sold. Assume that in 2017 warranty costs estimated at $315,000 and that the related warranty work was actually paid for during 2018. Required Explain how financial statements are affected due to warranties in 2017 and 2018. Part 2: Assume that Fabfit Enterprises collected $1,950,000 during 2017 for fitness magazines that will be delivered future years. During 2018, Fabfit delivered magazines based on these subscriptions amounting to $1,835,000 Required Explain how financial statements are affected in 2017 and 2018 by these subscriptions