AP$9\mathrm{.}12($LO $6,7)$ An icon reads, Moderate. Evaluating results of substantive procedures The following items are documented in the working papers.

A sales transaction is included in the year ended December $2025,$ but evidence from the cutoff procedure suggests the sale should be dated January $1,2026($$$1,250,000).$

At December $31,2024,$ the balance of the Liability for Warranty Claims account was $$100,000($credit balance$).$ During $2025,$ $$150,000$ of warranty claims was processed. Inspection of correspondence suggests that an additional $$200,000$ in warranty claims could result from ongoing disputes with customers. No adjustment for these claims has been made. Management has booked a warranty liability accrual at the end of December $2025$ of $$120,000.$

Restructuring expenses related to reorganization of head office administration were incorrectly charged to rental expenses $($$$578,920).$

No expense for impairment of assets has been made by management. A drought$-$induced recession has adversely impacted property values in regional cities where seven branch offices are located $($head office and two branch offices are located in the capital city$).$ Total land and buildings in the trial balance is $$5,500,000.$

Required

Evaluate each item and explain whether it is a factual misstatement or a judgmental misstatement. Which accounts would be affected, and how, if an adjustment is made for each item?