Click to watch the Tell Me More Learning Objective 5 video and then answer the questions below. 1. If a contingent liability is probable and the amount of the liability can be reasonably estimated, it is not recorded but should be disclosed. recorded and disclosed. recorded only. not recorded and not disclosed. b

2. Assume that during May, a company sold a product for $160,000 that includes a 36-month warranty. Historically, the average cost of repairs over the warranty period is 7% of the sales price. The entry to record the estimated product warranty expense would include a __________ to __________ for $11,200. debit; Product Warranty Expense credit; Cash debit; Product Warranty Payable credit; Product Warranty Expense b

Click to watch the Tell Me More Learning Objective 5 video and then answer the questions below. 1. If a contingent liability is probable and the amount of the liability can be reasonably estimated, it is a. not recorded but should be disclosed. b. recorded and disclosed. C. recorded only. d. not recorded and not disclosed. b to 2. Assume that during May, a company sold a product for $160,000 that includes a 36-month warranty. Historically, the average cost of re sales price. The entry to record the estimated product warranty expense would include a for $11,200. a. debit; Product Warranty Expense b. credit; Cash C. debit; Product Warranty Payable d. credit; Product Warranty Expense b Click to watch the Tell Me More Learning Objective 5 video and then answer the questions below. 1. If a contingent liability is probable and the amount of the liability can be reasonably estimated, it is a. not recorded but should be disclosed. b. recorded and disclosed. C. recorded only. d. not recorded and not disclosed. b to 2. Assume that during May, a company sold a product for $160,000 that includes a 36-month warranty. Historically, the average cost of re sales price. The entry to record the estimated product warranty expense would include a for $11,200. a. debit; Product Warranty Expense b. credit; Cash C. debit; Product Warranty Payable d. credit; Product Warranty Expense b