App CHWO Required information Exercise 8-14A Record warranties (LO8-5) (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 5% of sales. Sales for the month of December are $480,000. Actual warranty expenditures in January of the following year were $17,000. Exercise 8-14A Part 1 Required: 1. Does this situation represent a contingent liability? Yes or No Yes No 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 5% of sales. Sales for the month of December are $480,000. Actual warranty expenditures in January of the following year were $17,000. 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/evel select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet