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Cupola Awning Corporation introduced a new line of commercial awnings in 2024 that carry a fwo-year warranty against manufacture's defects. Based on their experience with

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Cupola Awning Corporation introduced a new line of commercial awnings in 2024 that carry a fwo-year warranty against manufacture's defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 4% of sales. Sales and actual warranty expenditures for the first year of selling the product were: Required: 1. Does this situation represent a loss contingency? 2. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2024 3. What amount should Cupola report as a liabillty at December 31, 2024? Complete this question by entering your answers in the tabs below. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2024 . Note: If no entry le requited for a transaction/event, select " No joumal entry required" in the first account fleld. Journal entry worksheet 3 Cupola Awning Corporation introduced a new line of commercial awnings in 2024 that carry a two-year warranty against manufacturer's defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 4% of saies. Sales and actual warranty expenditures for the first year of selling the product were: Required: 1. Does this situation represent a loss contingency? 2. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2024 . 3. What amount should Cupola report as a liablitity at December 31,2024 ? Complete this question by entering your answers in the tabs below. What amount should allability at December 31,2024

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