The following items have to be considered in finalizing the financial statements of Pj limited a limited liability company: i) The company gives warranties on its products. The company's statistics show that about 6% of sales give rise to a warranty claim. ii) The company has guaranteed the overdraft of another company. The likelihood of a liability arising under the guarantee is assessed as possible. What is the correct action to be taken in the financial statements for these items? O a. Item 1: create a provision; Item 2: create a provision O b. Item 1: Create a provision; Item 2: disclose by note only O c. Item 1: disclose by note only, Item 2: disclose by note only d. Item 1: disclose by note only: Item 2: no action Oe