General Motors Company disclosed estimated product warranty payable for comparative years as follows: GM's sales were $135,311
Question:
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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Related Book For
Accounting
ISBN: 978-0176509743
Volume 1, 2nd canadian Edition
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
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