10.00 points The following selected transactions relate to contingencies classical Tool Makers, Inc., which began operations in July 2013. Classical's fiscal year December Financial statements are issued in April 2014 1. Classical's products carry a one-year wamanty against manufacturers defects. Based on previous experience, warranty costs are expected to approximate of sales. were $2 credit) for 2013. Actual warranty expenditures were $30,800 and were recorded as warranty expense when incurred. 2. Although no customer accounts have been shown to be uncollectible, Classical estimates that 2% of credit will eventually prove 3. In December 2013, the state of Tennessee fied suit against Classical, seeking penalties for violations of clean air laws. On January 23, 2014, Classical reached a settlement with state authorities to pay $1.5 million in penalties. 4. Classical is the plaintiff in a s4 milion lawsuit filed against a supplier. The suit is in final appeal and million 5. In November 2013, classical became aware of a design faw in an industrial saw that poses a potential electrical hazard. A product recall appears unavoidable. Such an action would likely cost the company $500,000. 6. offered $25 cash rebates on a new model of jigsaw. customers must mail in purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that of the rebates will be claimed. Ten thousand of the jigsaws were sold in 2013 Total rebates to customers in 2013 were $105.000 and were recorded as promotional expense when paid. Required a. Prepare the year-end entries for any amounts that should be recorded as a result of each of the above contingencies. no entry required for a event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) Journal Entry Worksheet Classical's products carry a one-year warranty against manufacturer's