2 of 3 (1 complete) Transactions 2018 Mar May Sep Dec 3 Purchased a piano inventory) for $35,000, signing a six-month, 10% note payable. 31 Borrowed $78,000 on a 5% one-year note payable. 3 Paid the six-month, 10% note at maturity. 31 Accrued warranty expense, which is estimated at 2.5% of sales of $195,000. 31 Accrued interest on the outstanding note payable. 2019 May 31 Paid the outstanding note payable at maturity. Print Done Debit Credit Thompson Go Karts sells motorized gokarts. Thompson Go-Karts are motorized and arot company uses a perpetual inventory system. Selected transactions in the month of Decemnt A (Click the icon to view the transactions.) Read the requirements. Date Dec Accounts Det No entry required Accounts Receivable Accrued Liability from Lawsuit Now record the Accrued Warranty Payable Cash Cost of Goods Sold Inventory Loss from Lawsuit Note Payable, Short-term Sales Revenue Warranty Expense Date Debil Dec 5: Thompson received notice of a class-action lawsuit being filed against it. The lawsuit cl defective engines and pay damages for the owners' loss of use. The cost of replacing the engi lose the case, but the attorney cannot provide a dollar estimate of the potential loss amount. Date Journal Entry Accounts Debit Dec 5 Choose from any list or enter any number in the input fields and then continue to the nex and other recreation , but computer s epe r ty wytem. Selected transactions in the month of December follow MUUT Click the icon to view the transactions.) Read the moments Dec 31: Thompson estimates that the warranty expense is 10% of gross sales Thompson's grous sales for the period od 800.000 Journal Entry Accounts Debit Requirement 2. Describe how each of the contingent liabilities in the selected December transactions would be treated in Thompson's financial statements for 2019. (Select four answers.) A. Dec 31 transaction will be reported as a liability on the balance sheet and an expense on the income statement Transaction will not be footnoted since it is recorded on the financial 8. Dec 22 transaction will not be footnoted because it is unlikely to be a loss c. Dec 31 transaction will be reported as a liability on the balance sheet and an expense on the income statement Transaction will also be footnoted. D. Dec 27 transaction will be reported as a liability on the balance sheet and an expense on the income statement Transaction will not be footnoted since it is recorded on the financial statements E. Dec 5 transaction will be footnoted as a contingent ability DR Dec 22 transaction will be footnoted as a contingent liability DG Dec 27 transaction wil be reported as a bity on the balance sheet and a loss on the income statement Transaction will be food H. Des transaction will be reported as a blity on the balance sheet and expense on the income statement Transaction will be fooled Choose from any list or enter any number in the input fields and then continue to the next