1. On March 20, 2020, Argo Fabric & Craft Store files all necessary sales tax reports and pays $545 for state and local sales tax for the month of February. Record the sales tax payment.
2. On September 13, 2020, Argo Electronics sells $180,000 of goods and collects sales tax of 8%. Record the sale.
3. In 2019, Argo Computer Store had computer sales of $200,000. Each computer comes with a 1-year warranty against manufacturer defects. Argo expects warranty costs to be approximately 3% of sales. Actual warranty expenditures in January 2020 were $550.
   1. Record the estimated warranties on December 31, 2019 based on 3% of 2019 sale
   2. Record the payment of the actual warranty expenditures of $550 in January of the following year.
4. Argo Motor Company, a motorcycle manufacturer, had the following contingencies:
   1. Argo estimates that it is reasonably possible that it will lose a current lawsuit. Argos attorneys estimate that the potential loss will be $2,200,000.
   2. Argo received notice that it is being sued. Argo is advised by its attorneys that the lawsuit is considered frivolous.
   3. Argo is currently the defendant in a lawsuit. Argo believes it is probable that it will lose the lawsuit. Estimated damages to be paid will be between $70,000 - $100,000. Argos attorneys believe the judge will award the plaintiff approximately $90,000.
   4. Argo recently filed a lawsuit against the manufacturer of a brake pedal used in a popular motorcycle sold by Argo, which had to be recalled due to a defective braking system. Argo is seeking damages of $1,500,000. Argo feels confident that it will be awarded the full amount of damages it is seeking.
   7. Determine the appropriate accounting treatment for each of Argos contingencies.