Ford Motor Company disclosed estimated product warranty payable for comparative years as follows.

Ford's sales were $147,128 million in 2004 and increased to $153,503 million in 2005. Assume that the total paid on warranty claims during 2005 was $12,000 million.
a. Why are short- and long-term estimated warranty liabilities separately disclosed?
b. Provide the journal entry for the 2005 product warrantyexpense.

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(in millions) 12/31/05 12/31/04 $12,953 $20,312 $14,082 7,728 21,810 Current estimated product warranty payable Noncurrent estimated product warranty payable7359 Total