Volvo Group reported the following information in a recent year for its product warranty costs along with provisions and utilizations of warranty liabilities (amounts in millions).

1. Prepare Volvo?s journal entry to record its estimated warranty liabilities (provisions) for the year.

2. Prepare Volvo?s journal entry to record its costs (utilizations) related to its warranty program for the year. Assume those costs involve replacements taken out of inventory, with no cash involved.

3. How much warranty expense does Volvo report for the year?

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Beginning product warranty liabilities, January 1 Additional provisions to product warranty liabilities... Utilizations and reductions of product warranty liabilities... Ending product warranty liabilities, December 31... SEK 9,881 7,836 (7.134) SEK 10,583 ........