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 $520,000. Actual warranty expenditures in January of the following year were $19,000. Required: 1. Does this situation represent a contingent liability? 2. & 3. Record the necessary entries in the Journal Entry Worksheet below. 4. What is the balance in the Warranty Liability account after the entries in Parts 2 and 3? Complete this question by entering your answers in the tabs below. Reg1 Reg 2 and 3 Reg 4 Does this situation represent a contingent liability? Does this situation represent a contingent liability? (Regt Req 2 and 3 > Reg 1 Reg 2 and 3 Reg 4 Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 12 Record the contingent liability for warranties. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Reg 1 Req 2 and 3 Req 4 What is the balance in the Warranty Liability account after the entries in Parts 2 and 3? Warranty Liability