1 Part 1 of 3 Required Information Exercise 8-14A Record warranties (L08-5) [The following information applies to the questions displayed below.] Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience. Computer Wholesalers expects warranty costs to be approximately 6% of sales. Sales for the month of December are $600.000. Actual warranty expenditures in January of the following year were $13,000. 0.5 points eBook Exercise 8-14A Part 1 Hint Required: 1. Does this situation represent a contingent liability? Print Yes or NO References Yes No Required Information Exercise 8-14A Record warranties (L08-5) [The following information applies to the questions displayed below.] Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience. Computer Wholesalers expects warranty costs to be approximately 6% of sales. Sales for the month of December are $600.000. Actual warranty expenditures in January of the following year were $13,000. Exercise 8-14A Parts 2&3 2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet Record the contingent liability for warranties. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Exercise 8-14A Parts 2 & 3 2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet