HiArch Products, Inc. is the subject of a class action lawsuit involving one of its products sold in retail stores over the past five years. HiArch's attortney has stated that there is a 90% probability that HiArch will lose the case. The attorney has estimated damages in the range of $10,000,000 to $20,000,000 with no amount in that range being more likely than any other. What journal entry should HiArch make as a result of the litigation? Debit Litigation Expense $18,000,000; Credit Litigation Liability $18,000,000 Debit Litigation Expense $10,000,000; Credit Litigation Liability $10,000,000 Debit Litigation Expense $9,000,000; Credit Litigation Liability $9,000,000 Debit Litigation Expense $15,000,000; Credit Litigation Liability $15,000,000 Hamilton Corp. sold a new model of laser printer in 2020 and 2021 to customers along with a two-year warranty guaranteeing the product against operational defects. Hamilton estimates warranty costs based on its experience and industry experience. For the laser printers sold in 2020 and 2021, Hamilton estimates warranty costs will total 1% of sales within the first 12 months following the sale and an additional 3% of sales in the second 12 months following the sale. Here are actual sales and warranty expenditures in the years ended December 31, 2020 and 2021: Sales Actual Warranty Expenditures 2020 $500,000 $3,450 2021 2,250,000 31,400 Total for the two years $2,750,000 $34,850 The customers do not pay extra for the warranties when they purchase the laser printers. What amount should Hamilton report as its total liability for warranties on its balance sheet at December 31, 2021? $47,650 $90,000 $67,500 $75,150 Lee Corporation operates a retail store in a state with an 8% sales tax. Lee records sales tax collected in the Sales Revenue account. Lee's unadjusted Sales Revenue for April totalled $2,535,405. Lee should post the following adjustng entry on April 30. All amounts are rounded to the nearest dollar. Debit Sales Revenue $202,832; Credit Sales Tax Payable $202,832 Debit Sales Tax Payable $202,832; Credit Sales Revenue $202,832 Debit Sales Tax Payable $187,808; Credit Sales Revenue $187,808 Debit Sales Revenue $187,808; Credit Sales Tax Payable $187,808