What two conditions must be met in order for a product

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General Motors Corporation disclosed estimated product warranty payable for comparative years as follows: (in millions) Current estimated product warranty payable in 2008: $ 3,792; 2007: $ 4,655 Noncurrent estimated product warranty payable in 2008: $ 4,699; 2007: $ 4,960 Total: 2008: $ 8,491; 2007: $ 9,615 GM's sales were $ 177,594 million in 2007 and decreased to $ 147,732 million in 2008. Assume that the total paid on warranty claims during 2008 was $ 5,000 million. a. Why are short and long-term estimated liabilities seperately disclosed? b. Provide the journal entry for the 2008 product warranty expense. c. What two conditions must be met in order for a product warranty liability to be reported in the financial statements?

Reference no: EM13566918

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