on July 2021 The following selected transactions relate to contingencies of Classical Tool Makers, Inc., which began Classical fiscal year ends on December 31. nancial statements are issued in April 2022 1. Classical products carry a one year warranty against manufacturer's defects. Based on previous experience warranty costs are expected to approximate 2 of Sales, Sales were $3.5 milion (all credit for 2021. Actual warranty peditures were $25.800 and were recorded as warranty expense when incurred 2. Although no customer accounts have been shown to be uncollectible, Classical estimates that 2% of credit cales will eventually prove uncollectible 3. In December 2021, the state of Tennessee filed suit against Classical, seeking penalties for violations of clean air laws. On January 23, 2022 Classical reached a settlement with state authorities to pay $30 m lon in penalties 4. Classical is the plaintiff in a $5.5 m on lawsuit filed against a supor The suit is in final appeal and attorneys advise that it is virtually certain that Classical will win the case and be awarded $40 million 5. In November 2021, Classical became aware of a design flaw in an industrial law that goes a potent electrical hazard. A product recall appears unavoidable, such an action would likely cost the company $650000 6. Classical offered $25 cash rebates on a new model of kisaw. Customer mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate Experience suggests that one of the relates will be claimed. Eleven thousand and five hundred of the jigsaws were sold in 2021 Total rebates to customers 2021 were $120.000 and were recorded as promotional expense when paid. Required: 1-a Prepare the year-end entries for any amounts that should be recorded as a result of each of the above contingencies 1-b indicate whether a disclosure note is needed for the above transactions Complete this question by entering your answers in the tabs below. Red LA Ro Prepare the year and entries for any amounts that should be recorded entry is required for ansaction aventu r e dollars) the bow tiga CF whole View tranciation list Journal entry worksheet Record any necessary and entry related to the w ant S evenue