Question: When Volkswagen AG admitted in fall 2015 that it deceived regulators by rigging exhaust emission results, the company booked a 6.7 billion euro accrual to

When Volkswagen AG admitted in fall 2015 that it deceived regulators by rigging exhaust emission results, the company booked a 6.7 billion euro accrual to cover future cash payments related to the crisis. Provide the journal entry recorded to book this accrual and indicate how it affected the basic accounting equation. Do the same for the cash payment Volkswagen expects to make at a later time.

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