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Cupola Awning Corporation introduced a new line of commercial awnings in 2024 that catry 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 catry 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 liability at December 31, 2024? Complete this question by entering your answers in the tabs below. Does this situation tepresent a loss contingency? Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the wa recorded during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty recorded during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that s) recorded during 2024 Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld. Journal entry worksheet manufacturer's defects. Based on their experience with previous product introductions, warranty costs are expecte 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 wa be recorded during 2024. 3. What amount should Cupola report as a liability at December 31,2024 ? Complete this question by entering your answers in the tabs below. What amount should Cupola report as a llability at December 31,2024

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