accounting please answer

Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2016 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $5.0 million. The fiscal year ends on December 31. Required: Should this loss contingency be accrued, only disclosed, or neither? . Neither Disclosed only . Accrued 2.What loss, if any, should Sound Audio report in its 2016 income statement? (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) $ LOSS, ood,U 3.What liability, if any, should Sound Audio report in its 2016 balance sheet? (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Liability milli 4. Prepare any journal entry needed. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list 1 Record the liability on product recall. all. edi