## Answers

Ans:

**(A) Demands on ; Demands**

**( B)** Journal Entry: **Entry 2**

Product. Warranty Expense | $ 3,509,000,000 | |

To Product Warranty Liability | $ 3,509,000,000 |

**Explanation**:

Warranty Expense:

= $ 7006 + X - $3100 = $ 7,415

= X = $7415 + 3100 - 7006

= X = $3509 million

**(C) Option : (D)**

It is **probable** that liability will occur and the amount of liability is **reasonably estimable.**

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