1. Discuss the types of estimated liabilities. 2. Discuss how to account for contingent liabilities. A contingent liability exists when the liability is not probable or it cannot be estimated. Contingent liabilities are disclosed in the notes to the financial statements unless the possibility is remote that there will be an outflow of resources in which case, the item is not recorded nor disclosed. 3. Breathe Therapeutic Company is located in Medicine Hat, Alberta and is a retailer of massage supplies. Beginning inventory is $70,000, and Breathe uses the perpetual inventory system. Complete the journal entries on the following dates, including 5% GST as applicable. Xebe po 50.000 de ani de la Mare Corpo 12 rather sells 2.000 mage products are credit tosses The merchandises 540,000 ket-30 The concept for the October 12h ale New Breathe remits the printement of OST 4. On November 16, 2015, Kinsmen Sports gave Source for Sports a 120-day, 8%, $120,000 note payable to extend a past due account payable. What amount of interest expense should Source for Sports report for calendar 2015? 5. On November 16, 2015, Source for Sports gave Kinsmen Sports a 90-day, 12%, $60,000 note payable to extend a past due account payable. Prepare the journal entry for Source for Sports to record the note and the extension of the past due account. 6. On November 16, 2015, Williams Industrial gave Phillip Co. a 90-day, 8%, $80,000 note payable to extend a past due account payable