Question - Bombardier Inc offers warranties on all of its products. Note 2 to Bombardier's financial statement stated the following: Product Warranties typically range from one to five years, except for aircraft and bogie structural warranties that extend up to 20 years.
In fiscal year 2012 Bombardier's Revenues were: 16,768,000,000 and Provisions for product warranties at year end (2012): 966,000,000. During 2012, Bombardier paid $365 million to customers in exchange for returned products under warranty.
Compute the amount of warranty expense for fiscal year 2012?