Acerued Product Warranty Lachgar-industries disclosed estimated product warranty payable for comparative years as follows: rresurne thar Lacngar's sales were $213,844 million in Year 2. Assume that the total paid on warranty claims during Year 2 was $16,918 million. a. The distinction between short- and leng-term liabilities is important to creditors in order to accurately evaluate the near-term cash. business relative to the quick cuerent assets and other longer-term 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 financial statements