Commander Appliance Store prepares annual financial statements. At December $31,2022,$ Commander needs to analyze the following items to determine whether adjusting entries are required for $2022.$

Twenty$-$two employees worked during $2022$ and each of them will take two weeks of vacation in $2023.$ Twelve of these employees earn $$530$ per week and ten employees earn $$830$ per week. $($If an adjusting entry is required, ignore payroll taxes on this item.$)$

Office rent for January, $2023$ has not yet been paid.

Commander sold $3,300$ coffee brewing machines for total sales of $$165,000.$ Commander expects that $30$ machines will need warranty repairs in the next two years and estimates the cost of repairs to be $$2,700.$

Commander has been sued by a customer and assesses the probability of losing the lawsuit to be reasonably possible. The estimate of the contingency loss is $$20,300.$

Required:

Record the adjusting entry needed at December $31.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field."

Journal entry worksheet

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Record the contingent loss of $$20,300$ due to a lawsuit sued by a customer where the probability of losing is reasonably possible.

Note: Enter debits before credits.

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