General Motors Company (G M) disclosed estimated product warranty payable for comparative years as follows:

Assume that GM's sales were $155,929 million in the current year and that the total paid on warranty claims during the current year was $4,326 million.
a. Why are short- and long-term estimated warranty liabilities separately disclosed?
b. Provide the journal entry for the current year product warranty expense.
c. What two conditions must be met in order for a product warranty liability to be reported in the financial statements?

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(in millions) Current Year Prior Year Current estimated product warranty payable Noncurrent estimated product warranty payable Total $3,582 $2,721 6064 4880 4,880 $7,601