Polaroid designs, manufactures, and markets products primarily in instant image recording. Its annual report contained the following note: 1. Assume that estimated warranty costs for 2003 were $2 million and that the warranty work was performed during 2004. Describe the financial statement effects for each year.

Reader's Digest Association is a publisher of magazines, books, and music collections. The following note is from its annual report: 2. Assume that Reader's Digest collected $10 million in 2003 for magazines that will be delivered in future years. During 2004, the company delivered $8 million worth of magazines on those subscriptions.

Describe the financial statement effects for each year.

Brunswick Corporation is a multinational company that manufactures and sells marine and recreational products. Its annual report contained the following information:

Transcribed Image Text:

Product Warranty Estimated product warranty costs are accrued at the time products are sold.