Lachgar Industries disclosed estimated product warranty payable for comparative years as follows: Presume that Lachgar's sales were $177,984 million in Year 2. Assume that the total paid on warranty claims during Year 2 was $14,081 million. a. The distinction between short- and long-term liablities is important to creditors in order to accurately evaluate the near-term cash. on tho busine: Teeosack r check My Work Raview the need for a classified balance sheet. b. Provide the joumal entry for the Year 2 product warranty expense. Fitithock Recall that this is an accrued expense adjusting entiy and that all adjusting entries affect at feast one balance shicet account and orie inconie statement account 7 chack My wor C. What two conditions must be met in order for a preduct warranty liability to be repoited in the financial statements? Il is probable that the liability willeccur and the amount of the liability is reasonably estimable