Exercise 13-15 (Algo) Warranties; financial statement effects [L.013-5, 13-6] Cupola Awning Corporation introduced a new line of commercial awnings in 2024 that carry a two-year wairanty against manufacturer's defects. Based on their experience with previous product introductions, waranty costs are expected fo opproximate 2% 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 joumal entries that summarize sales of the awnings (assume all credit salen) 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. Ddes this mituation represent a loss contingency? 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, Dots this situation represent a loss contingency? Journal entry worksheet 3 Journal entry worksheet