Best Master's is h login | GradesFrst Home | GradesFiest Pay Calculator Print Iiten Lachgar Industries discdlosed estimated product warranty payable for comparative years as follows ( in millions) Year 2 Year 1 Current estimated product warranty payable $16,291 $15,619 Noncurrent estimated product warranty payable 9,909 8,733 Total 26,200 $24,352 Presume that Lachgar's sales were $212,289 milion in Year 2. Assume that the total paid on warranty daims during Year 2 was $16,795 million. a. The dstinction betwen short- and ont abiltles s nmportant to cred@tors in order to accuratdly evakate the near term cash demands on the business relative to the quick current assets and other longer-term demands b. Provide the journal entry for the Year 2 product warranty expense. mart warranty Exponse. Product Warranty Payable 16,7%) 16.795 X c. What two conditions must be met in order for a product warranty Sablity to be reported in the financial statements? it is probable that the liability will occur ond the amount of the liability is reasonably estimable. v Previous Next All work saved