Question

WP 20 Brony's Bikes Estimated Liability for Product Warranty December 31, 20X9 Prepared by: Date: Reviewed by: Date: Account 8330 Warranty Expense VYX9 Audited balance 20x9 Provision for warranty Account 2070 Estimated Liability $860,000 $1,139,000 & $1,139,000 $1,999,000 ($1,455,000) E 20x9 Warranty claims by customers 12/3YX9 Ledger balance $544,000 $1,139,000 Recommended audit adjustment (below) $286,883 $286,883 1213VX9 Audited balance $830,883 $1,425,883 Explanation of audit legends: & Recalculated at 12% of cost of sales E Examined underlying documentation on a test basis Data from client-prepared analysis of warranty claims: Year of Sale 20x8 Year of Claim 20x9 20x7 20X6 $412,000 $1,100,000 20X6 20X7 20x8 20x8 $344,000 $830,000 $246.000 $895,000 $560,000 $1,141,000 $1,174,000 $1,512,000 Cost of Goods Sold $231,157,214 - $215,600,000 $209,440,000 $211,365,000 Warranty claims as a percent of cost of goods sold - 0.53% 0.56% 0.72% Appropriate percentage based on analysis 0.60% Audit Adjustment 12 $286,883 Appropriate provision based on analysis 20x9 claims already honored $1,390,883 ($560,000) $286,883 8330 Product Warranty Expense 2070 Estimated Liability for Product Warranty To adjust liability to amount considered reasonable based on past history of warranty claims. 1231X9 Calculated liability 12/31X9 Ledger balance $830,883 $544,000 Recommended adjustment $286,883 - Unaudited cost of goods sold Audit adjustment No. 1 Audit adjustment No. 3 $227,800,000 $2,503,060 $854,154 Audited cost of goods sold $231, 157,214

What comprises the documentation examined by the auditor (audit legend E)? Supporting the warranty claims and reserves.