Compact Electronics is a leading manufacturer of digital camera equipment. Assume the following transactions occur during the year ended December 31, 2021.

1. Accounts receivable were $27.3 million (all credit) at the end of 2021. Although no specific customer accounts have been shown to be uncollectible, the company estimates that 1% of accounts receivable will eventually prove uncollectible.

2. Compact Electronics is the plaintiff in a $3.3 million lawsuit filed against a supplier. The suit is in final appeal, and attorneys advise it is virtually certain that Compact Electronics will win and be awarded $1.8 million.

3. In November 2021, Compact Electronics became aware of a design flaw in one of its digital camera models. A product recall appears probable and would likely cost the company $430,000.

4. Compact Electronics is the defendant in a patent infringement lawsuit brought by a competitor. It appears reasonably likely Compact Electronics will lose the case, and potential losses are estimated to be in the range of $0.8 to $1.8 million.

Required:

Record any amounts as a result of each of these contingencies. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.)

• Record the estimated uncollectible accounts.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

• Record the contingent gain if needed.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
2

• Record the contingent liability if needed.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
3

• Record the contingent liability if needed.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
4