Buehler's Broncos, located in The Hague, Netherlands, are the makers of the Denver, a sports utility vehicle. After the year end, but before the financial statements are authorized for issuance, Buehler's Broncos issues a recall of the last two years of the Denver for a fault in casting the engine block that could cause catastrophic engine failure at high speeds. The warranty expense related to this recall is extremely high, and bad publicity is having a strong, negative impact on sales. Is this an adjusting event or a non-adjusting event? Why?

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The Answer of Buehler's Broncos, located in The Hague, Netherlands, are the makers of the Denver, a sports utility vehicle. After the year end, but before the financial statements are authorized for issuance, Buehler's Broncos issues a recall of the last two years of the Denver for a fault in casting the engine block that could cause catastrophic engine failure at high speeds. The warranty expense related to this recall is extremely high, and bad publicity is having a strong, negative impact on sales. Is this an adjusting event or a non-adjusting event? Why?

Buehler's Broncos, Located in the Hague, Netherlands, Are the Makers