1. Classical's products carry a one-year warranty against manufacturer's defects. Based on previous experience, warranty costs are expected to approximate 4% of sales. Sales were $2.7 million (all credit) for 2021. Actual warranty expenditures were $43,500 and were recorded as warranty expense when incurred. 2. Alhough no customer accounts have been shown to be uncollectible, Classical estimates that 3% of credit sales will eventually prove uncoliectible. 3. In December 2021, the state of Tennessee filed suit against Classical, seeking penalties for violations of clean air laws. On January 23,2022 , Classical reached a settlement with state authorities to pay $2.2 million in penalties. 4. Classical is the plaintiff in a $4.7 million lawsult filed against a supplier. The suit is in final appeal and attorneys advise that it is virtually certain that Classical will win the case and be awarded $3.2 million. 5. In November 2021, Classical became aware of a design flaw in an industrial saw that poses a potential electrical hazard. A product recall appears unavoidable. Such an action would likely cost the company $570,000. 6. Classical offered $25 cash rebates on a new model of jigsaw. Customers must mail in a proof-of-purchase seal from the package plus the cash register receipt to recelve the rebate. Experience suggests that 70% of the rebates will be claimed. Ten thousand and seven hundred of the jigsaws were sold in 2021. Total rebates to customers in 2021 were $112,000 and were recorded as promotional expense when paid. Required: 1.a Prepare the year-end entries for any amounts that should be recorded as a result of each of the above contingenctos. 1.b indicate whether a disclosure note is needed for the above transactions. Complete this question by entering your answers in the tabs below. Prepare the year-end entries for any amounts that should be recorded as a result of each of the above contingencies. (It no entry is required for a transactionvevent, select "No joumal entry required" in the first account field. Enter your answers in whole dollars.)