General Motors Corporation (GM) disclosed estimated product warranty payable for comparative years as follows: GMs sales were

General Motors Corporation (GM) disclosed estimated product warranty payable for comparative years as follows:

GM’s sales were $135,592 million in Year 2. Assume that the total paid on warranty claims during Year 2 was $3,000 million.
a. Why are short- and long-term estimated warranty liabilities separately disclosed?
b. Provide the journal entry for the Year 2 product warranty expense.
c. What two conditions must be met in order for a product warranty liability to be reported in the financialstatements?

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(in millions) Year 2 $2,587 Year 1 Current estimated product warranty payable Noncurrent estimated product warranty payable Total $2,965 $6,789 $7,030