Harbour Company disclosed estimated product warranty payable for comparative years as follows:

$($in millions$)$

Current estimated product warranty payable

$\backslash$table$[[$Current Year,Prior Year$],[$$$12,057,$$$11,560,]]$

Noncurrent estimated product warranty payable

Total

$=\frac{7,334}{\text{\$}19,391}=$$$18,024$

Assume that Harbour's sales were $$142,199$ million in current Year and that the total paid on warranty claims during the current year was $$12,430$ million.

a$.$ The distinction between short$-$ and long$-$term liabilities is important to creditors in order to accurately evaluate the near$-$term cash business relative to the quick current assets and other longer$-$term the

b$.$ Provide the journal entry for the current Year product warranty expense. Enter your answers in millions. If an amount box does not require an entry, leave it blank.

c$.$ What two conditions must be met in order for a product warranty liability to be reported in the financial statements?