ezto. Question 16 (of 21) 16. 10.00 points Cupola Awning Corporaion introduced a new line of commercial awnings in 2016 that carry a two-year warranty against manufacturer's delects. Based on their experience with previous product introductions, warranty costs are expeded to approximate 2% of sales. Sales and actual warranty expenditures for the first year of selling the product were: Sales $5,730,000 $53,750 Required 1. Does this situation represent a loss contingency? Yes No 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 2016 Of no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the 2016 sales. Note: Enter debits before credits. Event General Journal Credit