Question

General Motors Company disclosed estimated product warranty payable for comparative years as follows:
GM's sales were $135,311 million in 2010 and increased to $148,866 million in 2011.
Assume that the total paid on warranty claims during 2011 was $4,000 million.
a. Why are short- and long-term estimated warranty liabilities separately disclosed?
b. Provide the journal entry for the 2011 product warranty expense.


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  • CreatedSeptember 15, 2015
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