Accrued Product Warranty Lachgar Industries disclosed estimated product warranty payable for comparative years as follows: (in millions) Year 2 Year 1 $11,823 $11,336 Current estimated product warranty payable Noncurrent estimated product warranty payable 7,192 6,338 Total $19,015 $ 17,674 Presume that Lachgar's sales were $154,069 million in Year 2 and that the total paid on warranty claims during Year 2 was $12,189 million. order to accurately evaluate the near-term cash demands on the business relative to the quick current assets and other a. The distinction between short- and long-term liabilities is important to creditors longer-term demands Fredback require an entry, leave it blank. b. Provide the journal entry for the Year 2 product warranty expense. If an amount box does Product Warranty Expense 88 Product Warranty Payable Feedback c. What two conditions must be met in order for a product warranty liability to be reported in the financial statements? It is probable that the liability will occur and the amount of the liability is reasonably estimable