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Bombardier Inc. specializes in manufacturing transportation products (aircraft, railway equipment, snowmobiles, and watercraft}. The company offers warranties on all of its products. Note 2 to Bombardier's nancial statements for scal year 215 stated the following: Product warranties typically range from one to ve years, except for aircraft and hogie structural warranties that extend up to 2D years. Selected information from Bombardier's annual reports follows [amounts in millions of US. dollars}: 211115 2914 2513 Revenues 16,353 13,44? 1?,992 Provision for product warranties at year-end 936 1,093 1,140 During scal year 2015. Bombardier paid ti million to customers in exchange for returned products under the warranty. Required: 1. Compute the amount of warranty ean-ense for scal year EH15. {Enter your answer in millions of dollars.) _:I 2. Prepare journal entries to record both the warranty expense for the year and the payments made under the warranty. {If no entry is required for a transactiontevent. select "No journal entry required" in the rst account field. Enter your answers in millions of dollars.) Journal entryr worksheet Record payments to customers In exchange for returned products. 2. Prepare journal entries to record both the warranty expense for the year and the payments made under the warranty. {If no entry is required for a transactionievent. select "No journal entry required" in the rst account field. Enter your answers in millions of dollars.) View transaction list Journal entry worksheet Record payments to customers in exchange For returned products. Note: Enter debits before credits. 1I'iew general journal 3-a. Compute the ratio of the warranty liability to revenues for the three years. (Round percentage answers to 2 decimal places [i.e., 11.1243 should be entered as 12.43}.] II---E 3-H. Cmpute the ratio at the warranty liability ta revenues fer the three years. [Reund percentage answers to 2 decimal places ii.e., 11.1243 sheuld be entered as 12.43:\" -E-E-E 3-b. Has the ratie increased cr decreased during the three-year aeric-cl'i|I 4. Based en the limited int'crmatien available about the warranty expense and payments in 2015. shculd Etemberdier increase the balance at the 1.Ilrerranty liability in future years":|I lfillies C) MD