Exrrcise 6. There are times when a company is not sure whether a liability should be actually shown as a doklir arnownt in the Uabelity section of the Aalance Sheet or jut mentioned in the Notes to the Finandal Statements. What are the 2 cilieria accountants use to make the decikion about these continasent labbities (depedent on a funute event) as to inclucion on the Bulance gheet? 1) AND 2] If the accountant decides that the continpent fiability should not be shown as an amount on the Ealance Sheet, is it then alsass thown and descinsed in the Notes in the Financial Statnments? Exercite 7. On Dec 1, 20xx, Diat Company intrpduced a new product that includod a one-year warranty on parta. In December, 1,000 units were sold. Daz estimates that $ sk of these will be broupht back under the warranty for. roplacemeat of parts ot an werage cost of 580 per unit. Drepare (a) the adjucting entry needed at December 31 a 200 . for this contifent tiablity and (bl the entry requirnd in laruary zoxi, when a deflective unit is replaced for a cost of \$5o of tabor and 529 in parts from the Supplies