Accrued Product Warranty Lachgar Industries disclosed estimated product warranty payable for comparative years as follows: Presume that Lachgar's sales were $184,873 million in Year 2 . Assume that the total paid on warranty ciaims during Year 2 was $14,626 miltion. a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate the nearterm cash on the business relative to the quick current assets and other longer-term Fondbeck rhick My Work Review the need for a classified balance sheet. b. Provide the journal entry for the Year 2 product warranty expense. Feedbsic F Cnock My Work Recall that this is an accrued expense adjusting entry and that all adjusting entries affect at least one balance sheet account and one income statement account. 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 tiability will occur and the amount of the liability is reasonably estimable