Accrued Product Warranty Lachgar Industries disdlosed estimated product warranty payable for comparative years as follows: in millions) Year 2 Year 1 16,291 $15,619 Current estimated product warranty payable Noncurrent estimated product warranty payable 9,909 8,733 Total Presume that Lachgar's sales were $212,289 million in Year 2. Assume that the total paid on warranty daims during Year 2 was $16,795 milion. $26,200 $24,352 a. The distinction between short- and long-term liablities is important to creditors in order to accurately evaluate the near-term cash demands on the business relative to the quick cront enets an nt b. Provide the journal entry for the Year 2 product warranty expense. Product Warranty Expense Pro hid warranty Payable c. What two conditions must be met in order for a product warranty iability to be reported in the financial statements? It is probable that the liability will occur and the amount of the liability is reasonably estimable