Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships. Required: 1. The likelihood of a payment occurring is probable, and the estimated amount is $1.3 million 2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $11 to $1.6 million 3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.3 million 4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million nces Record the necessary entry for the scenarios given above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answer in dollars, not millions. For exomple, $5,5 million should be entered as 5,500,000.) View transaction list Journal entry worksheet 1 2 Record the contingent liability. If necessary, If the likelihood of a payment Occurring is probable, and the estimated amount is $1.3 million Transaction Genc Journal Debat entered as View transaction list Journal entry worksheet 1 3 4 2 > Record the contingent liability, if necessary, if the likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.1 to $1.6 million Note: ter debits before credits Transactiun General Journal Debit Credit 2 Record the contingent liability, if necessary, if the likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.3 million. Note: Enter debits before credits Transaction CA Record the contingent liability, if necessary, if the likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million. Note: Enter debits before credits [The following information applies to the questions display Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading thelt computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 6% of sales. Sales for the month of December are $600,000. Actual warranty expenditures in January of the following year were $13,000 2.&3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/even select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Record the contingentity for warranties (The following information applies to the u Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 6% of sales. Sales for the month of December are $600,000. Actual warranty expenditures in January of the following year were $13,000 2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/e select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet
