Page 1/8 #1 Rotary Tools sells power tools and backs each product it sells with a one-year warranty against defects. The company estimates warranty expense to be approximately 5% of sales. During 2022, sales are $800,000. LABEL answers 1A, 1B, 1C, 1D, 1E 6 points A) Does this situation above represent a contingent liability? YES or NO B) Warranty expense for the year ended 12/31/2022 = $ C) Warranty expense is presented on which financial statement? Balance Sheet Income Statement Statement of Retained Earnings D) Warranty liability is presented on which financial statement? Balance Sheet Income Statement Statement of Retained Earnings E) In bruary 2023, Rotary Tools fulfills warranty obligations by replacing product, 2,500. Prepare the journal entry for February 28, 2023 (use date 2/28/2023)