tme curTeni Iscai year, to record tne accrued product warranu b. Journalize the entry to record the warranty work provided in February EX 10-20 Accrued product warranty General Motors Corporation (GM) disclosed estimated product warranty payable for compara- tive years as follows: OBJ. S Current estimated product warranty payable Noncurrent estimated product warranty payable Total (in millions) Year 2 $3,059 4.327 $7,386 Year 1 $2,884 4.147 $7,031 Chapter 10 Current Liabilities and Payrol 487 Presume that GM's sales were $135,592 million in Year 2 and that the total paid on warranty claims during Year 2 was $3,000 million. a. Why are short- and long-term estimated warranty liabilities separately disclosed? b. Provide the journal entry for the Year 2 product warranty expense. c. What two conditions must be met in order for a product warranty liability to be reported in the financial statements? EX 10-21 Contingent liabilities Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $240 000 The comnanv is contectino the Gna 1 n OBJ.5 one