Carnes Electronics sells consumer electronics that carry a 90-day manufacturer's warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes received $422,000 for these extended warrantles, and on average the warranties were 20% expired by year end. Required: 1-a. Does this situation represent a loss contingency? 1-b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warranties and recognition of any revenue associated with those warranties. Complete this question by entering your answers in the tabs below. Does this situation represent a loss contingency? Carnes Electronics sells consumer electronics that carry a 90-day manufacturer's warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes recelved $422,00 for these extended warrantles, and on average the warranties were 20% expired by year end. Required: 1-a. Does this situation represent a loss contingency? 1-b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warrantles and recognition of any revenue associated with those warranties. Complete this question by entering your answers in the tabs below. How should it be accounted for? Required: 1-a. Does this situation represent a loss contingency? 1-b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warrantles and recognition of any revenue associated with those warranties. Complete this question by entering your answers in the tabs below. Prepare journal entries that summarize sales of the extended warranties and recognition of any revenue associated with those warranties. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Note: Enter debits before credits. Required: 1-a. Does this situation represent a loss contingency? 1-b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warrantles and recognition of any revenue associated with those warrantles. Complete this question by entering your answers in the tabs below. Prepare journal entries that summarize sales of the extended warranties and recognition of any revenue associated with those warranties. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the revenue earned on extended warranty. Note: Enter debits before credits