Help Save & 1 No customer accounts have been shown to be uncollectible as yet but Eastern estimates that 3% oredit sales w eventualy 2 Eastern offers a one-year warranty against manufacturers defects for all its products. Industry experience indicates that warranty 3 In December 2018, Eastem became aware of an engineering flaw in a product that poses a potential risk of injury. As a result, a prove uncollectible. Sales were $27S million (all creditj for 2018. costs will approximate 200% of sales. Actual warranty expenditures were $300 million in 2018 and were recorded as warranty expense when incurred product recall appears inevitable. This move would likely cost the company $1.45 million 4 In November 2018, the State of Vermont filed suit against Eastern, asking civil penalties and injunctive relief for violations of clean water laws. Eastern reached a settlemenit with state authorities to pay $4 15 mllion in penalties on February 3, 2019 lawsuit is in final appeal and attorneys advise that it is virtually certain that Eastem ill be awarded $25 million 5 Eastem is the plaintiff in a $35 million lawsuit filed against a customer for costs and lost profits from contracts rejected in 2018 The Required Prepare the appropriate journal entries that should be recorded as a result of each of these contingencies (If no entry is required for trensaction/event, select "No journal entry required-in the first account field. Enter your answers in whole dollars) ournal entry worksheet No customer accounts have been shown to be uncollectible as yet, but Eastern Prex4 f 46 Next> 9 ER TY View transaction list No customer accounts have been shown to be uncollectible as yet, but Eastern estimates that 3% of credit sales will eventually prove uncollectible. Sales were 1 t Easter ales $275 million (all credit) for 2018. Eastern offers a one-year warranty against manufacturer's defects for all its products. Industry experience indicates that warranty costs will approximate 2.00% of sales. Actual warranty expenditures were $3.00 million in 2018 and were recorded as warranty expense when incurred. 2 Credi 3 In December 2018, Eastern became aware of an engineering flaw in a product that poses a potential risk of injury. As a result, a product recall appears inevitable. This move would likelv cost the comoanv $1.45 million. Note: journal entry has been entered Prev 40f 4611: N View transaction list 3 In December 2018, Eastern became aware ot an 56 engineering flaw in a product that poses a potential risk of injury. As a result, a product recall appears inevitable. This move would likely cost the company $1.45 million t Easter ales In November 2018, the State of Vermont filed suit against Eastern, asking civil penalties and injunctive relief for violations of clean water laws. Eastern reached a settlement with state authorities to pay $4.15 million in penalties on February 3, 2019. 4 Cred Eastern is the plaintiff in a $35 million lawsuit filed against a customer for costs and lost profits from contracts rejected in 2018. The lawsuit is in final appeal and attorneys advise that it is virtually certain that Eastern will be awarded $25 million. 5 Note : journal entry has been entered