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01/10/2021 Client: muhammad11 Deadline: 2 Day

PLEASE HELP. Read information very carefully!!!!!

General Motors Company (GM) disclosed estimated product warranty payable for comparan years as follows: (in millions) Current
Entry 3 3,587,000,000 Supplies Expense Wages Payable 3,587,000,000 Entry 4 Repairs Expense Accounts Payable 3,587,000,000 3,5

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General Motors Company (GM) disclosed estimated product warranty payable for comparan years as follows: (in millions) Current Year Prior Year Current estimated product warranty payable $3,068 $2,886 Noncurrent estimated product warranty payable 4,350 4,145 Total $7,418 $7,031 Assume that GM's sales were $135,506 million in the current year and that the total paid on warranty claims during the current year was $3,200 million. Required: 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 iwo conditions must be mer in order for a product warranty liability to be reported in the financial statements? a. Why are short and long-term estimated warranty liabilities separately disclosed? The distinction between short-and long-term liabilities is important to creditors in order to accurately evaluate the near-term cash the business relative to the quick current assets and other longer-term b. Select the journal entry for the current year product warranty expense, Entry 1 Product Warranty Expense Product Warranty Payable 358,700,000 358,700,000 Entry 2 Product Warranty Expense Product Warranty Payable 3,587,000,000 3,587,000,000


Entry 3 3,587,000,000 Supplies Expense Wages Payable 3,587,000,000 Entry 4 Repairs Expense Accounts Payable 3,587,000,000 3,587,000,000 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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