Ford Motor Company disclosed estimated product warranty payable for comparative years as follows:

Ford's sales were \(\$ 147,128\) million in 2004 and increased to \(\$ 153,503\) million in 2005 . Assume that the total paid on warranty claims during 2005 was \(\$ 12,000\) million.

a. \(\qquad\) Why are short- and long-term estimated warranty liabilities separately disclosed?

b. Provide the journal entry for the 2005 product warranty expense.objs. \(2,3,4\)

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Current estimated product warranty payable Noncurrent estimated product warranty payable Total (in millions) 12/31/05 12/31/04 $12,953 $14,082 7,359 7,728 $20,312 $21,810