General Motors Corporation GM disclosed estimated

product warranty payable for

General Motors Corporation (GM) disclosed estimated product warranty payable for
comparative years as follows: (in millions)Year 2................Year 1Current estimated product
warranty payable...................$3,059................$2,884Noncurrent estimated product warranty pa
yable................4,327..................4,147Total..................................................................$7,386.......
........$7,031Presume 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?View Solution: General Motors Corporation GM
disclosed estimated product warranty payable for
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