Lachgar Industries disclosed estimated product warranty payable for comparative years as follows: Current estimated product warranty payable (in millions) Year 2 Year 1 $15,848 $15,194 9,639 8,496 Noncurrent estimated product warranty pay ple Total $25,487 $23,690 Presume that Lachgar's sales were $206,512 million in Year 2 and that the total paid on warranty claims during Year 2 was $16,338 million. a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate the near-term cash on the business relative to the quick current assets and other longer-term b. Provide the journal entry for the Year 2 product warranty expense. If an amount box does not require an entry, leave it blank. 88 c. What two conditions must be met in order for a product warranty liability to be reported in the financial statements