General Motors Corporation disclosed estimated product warranty payable for comparative years as follows:

GM's sales were $177,594 million in 2007 and decreased to $147,732 million in 2008. Assume that the total paid on warranty claims during 2008 was $5,000 million.
a. Why are short- and long-term estimated warranty liabilities separately disclosed?
b. Provide the journal entry for the 2008 product warranty expense.
c. What two conditions must be met in order for a product warranty liability to be reported in the financialstatements?

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(in millions) 12/31/08 $3,792 Current estimated product warranty payable Noncurrent estimated product warranty payable Total 12/31/07 $4,655 4,699 4960 9,615 $8491 9615