Check my work 6 Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2021 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 $2 million. The fiscal year ends on December 31 10 points Required: 1. Should loss contingency be accrued & disclosed, only disclosed, or neither? 2. What if any, should Sound Audio report in its 2021 Income statement? 3. What liability, if any, should Sound Audio report in its 2021 balance sheet? 4. Prepare any journal entry needed. Complete this question by entering your answers in the tabs below. Reg 1 to 3 Should this los contingency be accrued & disclosed, only disclosed, or neither? What loss and liability, if any, should Sound Audio report in its 2021 income statement and balance sheet respectively? (Enter your answers in millions (l.e., 10,000,000 should be entered as 10).) 1. LOSS contingency milion 3. Labai milion