EX 10-23 Accrued Product Warranty Obj. 5 General Motors Company (GM) disclosed estimated product warranty payable for comparative years as follows: (in millions) Current Year Prior Year Current estimated product warranty payable Noncurrent estimated product warranty payable Total $3,769 $3,048 6,005 5,193 $9,774 $8,241 Assume that GM's sales were $127,204 million in the current year and that the total paid on warranty claims during the current year was $3,249 million. Why are short- and long-term estimated warranty liabilities separately disclosed? Journalize the adjusting entry for the current year's product warranty expense. What two conditions must be met in order for a product warranty liability to be reported in the financial statements?

EX 10-23 Accrued Product Warranty Obj. 5 General Motors Company (GM) disclosed estimated product warranty payable for comparative years as follows: (in millions) Current Year Prior Year Current estimated product warranty payable Noncurrent estimated product warranty payable Total $3,769 $3,048 6,005 5,193 $9,774 $8,241 Assume that GM's sales were $127,204 million in the current year and that the total paid on warranty claims during the current year was $3,249 million. Why are short- and long-term estimated warranty liabilities separately disclosed? Journalize the adjusting entry for the current year's product warranty expense. What two conditions must be met in order for a product warranty liability to be reported in the financial statements?

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 10.23EX

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