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The following selected transactions relate to conungencies or Classical Tool Makers, Incorporated, which began operations in July 2024. Classical's fiscal year ends on December 31. Financlal statements are issued in Aprit 2025 1. Classical's products carry a one-year warranty against manufacturer's defects: Based on previous experience, warranty costs are expected to approximate 4% of sales, Sales were $2.9 million (all credit) for 2024 . Actual wartanty expenditures were $51,100 and were recorded as warranty expense when incurred. 2. Although no customet accounts have been shown to be uncollecuble, Ciassical estimates that 1% of credit sales witt evertually prove uncollectible: 3. In December 2024, the state of Tennessee filed sult against Classical, seeking penaibes for volations of clean air laws on January 23,2025 , Classical reached a settlement with state authorities to pay $2.4 million in penalties. 4. Classical is the plainuff in a $4.9 milion lawsuit filed against a suppliet, The suit is in finat appeal and attorneys advise that it is virually certain that Classical will win the case and be awarded $3.4 milion, an amount that is miatensi to Classical. 5. In November 2024, Classical became aware of a design fiaw in an industnal saw that poses a potental electrical hazard. A product recall appears unavoldable, Such an action would likely cost the company $590.000. 6. Classical offered $30 cash rebates on a new model of 1 gsow. Customers must mail in a proof-of-purchase seal from the pack.age plus the cash register receipt to recene the rebate. Experience suggetis that 65% of the rebates will be cisimed Ten thousand and nine hundred of the jlgsaws were sold in 2024 . Total rebates to customers in 2024 were 5114,000 and were recorded os promotional expense when paid. Required: 1-0. Prepare the year-end entries for any amounts that should be recorded as a result af each of me above contingencies. 1.b. inclicate whether o disclosure note is needed for the above transactions. Complete this question by entering your answers in the tabs below. Journal entry worksheet 23456 Record any necessary year-end entry related to the warranties. Note: Enter debits before credits. Journal entry worksheet 5 6 Record any necessary year-end entry related to uncollectible accounts. Notet Enter debits before credits. Prepare the year-end entries for any amounts that should be recorded as a result of each of the above continuencies. whole dollaris, Journal entry worksheet Record any necessary year-end entry related to clean air law violations. Notes Enter debitar befare credits. whole dollars. Journal entry worksheet 6 Record any necessary year-end entry related to the lawsuit filed against a supplier. Note: Enter debits before credits. Journal entry worksheet 23 Note: Enter debits before credits. Journal entry worksheet 1 2 3 4 5 Record any necessary year-end entry related to rebates. Note: Encer debits before credits. Complete this question by entering your answers in the tabs below. Indicate whether a disclosure note is needed for the above transactions