Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 4% of sales. Sales for the month of December are $460,000. Actual warranty expenditures in January of the following year were $16,000.

1.Record the contingent liability for warranties

2.Record the actual warranty expenditures.

2. &3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the contingent liability for warranties. Note: Enter debits before credits. General Journal Debit Credit Record entry Clear entry View general journal