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 $550,000. Actual warranty expenditures in January of the following year were $20,500. 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 ? Complete this question by entering your answers in the tabs below. Does this situation represent a contingent liability? Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the actual warranty expenditures. Note: Enter debits before credits. What is the balance in the Warranty Liability account after the entries in Parts 2 and 3