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 6% of sales. Sales for the month of December are $510,000. Actual warranty expenditures in January of the following year were $18,500.

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?

Req 1 Req 2 and 3 Req 4 Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particula Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 > Record the contingent liability for warranties. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Req 1 Req 2 and 3 Req 4 Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particula Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 > Record the contingent liability for warranties. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet Record the actual warranty expenditures. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 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