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I am very confused about this problem and I need help with the following problem.
Accrued Product Warranty
General Motors Corporation disclosed estimated product warranty payable for comparative years as follows: (in millions) 12/31/08 12/31/07 Current estimated product warranty payable $3,792 $4,655 Noncurrent estimated product warranty payable 4,699 4,960 Total $8,491 $9,615 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. Provide the journal entry for the 2008 product warranty expense. |
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