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

	(in millions)
	Current Year		Prior Year
Current estimated product warranty payable	$11,201		$10,739
Noncurrent estimated product warranty payable	6,813		6,004
Total	$18,014		$16,743

Assume that Harbour's sales were $132,098 million in current Year and that the total paid on warranty claims during the current year was $11,547 million.

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

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?