This question is continue from the previous one that I ask for help and it is for Finance

Question $5$:

Advise TechMan on whether they should adopt the percentage of net credit sales method or the ageing method for accounting for doubtful debts. Provide a rationale for your recommendation, considering the nature of TechMan's business and its sales practices.

Warranties

While TechMan maintains high standards in producing electronic components and manufacturing tools, some manufacturing defects are inevitable. For the year ended $30$ June $2023,$ TechMan recorded net sales of $$990,000($GST inclusive$)$ and sales returns of $$12,000($GST inclusive$).$ Historically, approximately $1\%$ of net sales result in warranty claims. The management believes that warranty costs should be recognized as an expense only when the claims actually occur, typically in the period following the sale.

Question $6$:

With reference to the Conceptual Framework, evaluate whether you agree with TechMan approach to record warranties as an expense solely in the period when claims are made. If you disagree, explain how warranties for the year ended $30$ June $2023$ should be accounted for, including the necessary double$-$entry accounting entries.