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Garcla Electronics is a leading manufacturer of digital camera equipment. Assume the following transactions occur during the year ended December 31,2024. 1. Accounts recelvable were

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Garcla Electronics is a leading manufacturer of digital camera equipment. Assume the following transactions occur during the year ended December 31,2024. 1. Accounts recelvable were $27.1 million (all credit) at the end of 2024 . Although no specific customer accounts have been shown to be uncollectible, the company estimates that 3% of accounts recelvable will eventually prove uncollectible. 2. Garcia Electronics is the plaintiff in a $3.1 million lawsult filed against a supplier. The suit is in final appeal, and attorneys advise it is virtually certain that Garcla Electronics will win and be awarded $1.6 million. 3. In November 2024, Garcia Electronics became aware of a design flaw in one of its digital camera models. A product recall appears probable and would likely cost the company $410,000. 4. Garcia Electronics is the defendant in a patent infringement lawsuit brought by a competitor. It appears reasonably likely Garcia Electronics will lose the case, and potential losses are estimated to be in the range of $0.6 to $1.6million. Required: Determine the appropriate way Garcia Electronics would report the contingencies. Record any amounts as a result of each of these contingencies if required. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field, Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000. Journal entry worksheet Accounts receivable were $27.1 mililon (all credit) at the end of 2024. Although no specific customer accounts have been shown to be uncollectible, the company estimates that 3% of accounts recelvable will eventually prove uncollectible. Record the adjusting entry. Note: Enter debits before credits. Journal entry worksheet Garcia Electronics is the plaintiff in a $3.1 million lawsuit filed against a supplier. The suit is in final appeal, and attorneys advise it is virtually certain that Garcia Electronics will win and be awarded $1.6 million. Record any required entry for this contingency. Note: Enter debits before credits. Journal entry worksheet In November 2024, Garcia Electronics became aware of a design flaw in one of Its digital camera models. A product recall appears probable and would likely cost the company $410,000. Record any required entry for this contingency. Note: Enter debits before credits. Journal entry worksheet Garcia Electronics is the defendant in a patent infringement lawsuit brought by a competitor. It appears reasonably likely Garcia Electronics will lose the case, and potential losses are estimated to be in the range of $0.6 to $1.6 million. Record any required entry for this contingency. Note: Enter debits before credits

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