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 $400,000. Actual warranty expenditures in January of the following year were $13,000. 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. Does this situation represent a contingent liability? Journal entry worksheet Record the contingent liability for warranties. Note: Enter debits before credits. Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corpo upgrading their computer systems, and it backs each notebook it sells with a 90 -day warranty against defects. Based on pr experience, Computer Wholesalers expects warranty costs to be approximately 4% of sales. Sales for the month of Decemt $400,000. Actual warranty expenditures in January of the following year were $13,000. 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. What is the balance in the Warranty Liability account after the entries in Parts 2 and 3 ? Journal entry worksheet Record the contingent liability for warranties. Note: Enter debits before credits. Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corpo upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on pr experience, Computer Wholesalers expects warranty costs to be approximately 4% of sales. Sales for the month of Decemt $400,000. Actual warranty expenditures in January of the following year were $13,000. 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. What is the balance in the Warranty Liability account after the entries in Parts 2 and 3
