Cloud Company has a lawsuit pending from a customer e a customer claiming damages of $128,000. Cloud's s y advises that the likelihood t he customer will win is reasonably possible. How is this atorne contingent liability reported? A. It should be described in the footnotes. B. It should be recorded as an asset and a liability based on estimated amounts C. It should be recorded as an expense and a liability based on estimated amounts. sit yD. It should not be disclosed. 6. Tots Toy's owed Estimated Warranty Payable of $2,200 at the end of 20X8. During 20X9, Tots Toy's made sales of S280,000 and expects product warranties to cost the company 3% of the sales. During 20X9, Tots Toy's paid $5,000 for warranties. What is Tots Toy's estimated warranty payable at the end of 20X9? A. $10,600 B. $5,600 C. $5,000 D. $3,600 At December 31, your company owes employees for four days of the five-day workweek. The total payroll for the week is $51,000. What journal entry should you make at December 31? A. Nothing because you will pay the employees on Friday. B. Salaries and Wages Expense X 51.000 51,000 40,80040,800 Salaries and Wages Payable Salaries and Wages Expense Salaries and Wages Payable C. Salaries and Wages Payable 40,800 D Salaries and Wages Expense 40,800 During20X8, Crystal Glassware reported net income of S 123,000, income tax expense of $25,000, and interest expense of $11,000. What is Crystal Glassware's times-interest-earned ratio for 20X8? (Round to one decimal place.) A. 7.9 123,000+25000+11,000 C. 13.5 14.5 As of January 1, 20X9, Darnell's Deliveries owes $60,000 on a truck purchased for use by the business. The company makes principal payments of SI ,000 each month plus interest at g% the end of 20X9, after the first 12 months' payments of principal and interest, which of the following would be included on the balance sheet for December 31, 20x9? A. Long-term Liabilities $48,000 and Interest Payable for four years' interest. B. Long-term Liabilities $36,000; Current Liabilities $12,000; and Interest Payable for four 9. years' interest. C. Long-term Liabilities $36,000; Current Liabilities $12,000; and no Interest Payable D. Long-term Liabilities $48,000 and no Interest Payable 11-14