Please fill out both charts in the format that is presented

WARRANTIES The Royal Manufacturing Company begins production on a new machine (their inventory) that stitches baseballs, called the Stitch Me Up". The company had the following information during 2015: A. Sold 250 units at $3,000 each (Company Received Cash). Each machine costs $1,600 to manufacture B. Each Stitch Me Up machine is under warranty for three years and the company has estimated, from experience with a similar machine, that the warranty cost will average $260 per unit. C. Because of parts replacements and services rendered in compliance with the Stitch Me Up warranties, the company D. E. incurs $4,000 in warranty costs in 2015 Further, because of parts replacements and services rendered in compliance with the Stitch Me Up warranties, the company incurs $6,500 of warranty costs in 2016. Unused warranties expired during 2018. Using the Tabular Analysis, record the appropriate entries made by the Royal Manufacturing Company for A-E above. Balance Sheet Income Statement Liabilities Equity Revenue WarrantyRetained Asset Expense RevenueCOGSWarranty Expense Sales Account Cash Inventory Payable Earnings Revenue CONTINGENCIES You have recently been promoted to vice president of operations at Mercury Chocolate. In your review of the division, you discovered the following contingent liabilities. Mercury is the defendant in a copyright infringement lawsuit over Mercury's use of a competitor's packaging in several of its products. Mercury's attorney's claim that, if the suit goes against Mercury the loss may be as much as 12,500,000. The attormey believes the loss of this suit to be very probable. Again, no mention of this liability is made in the statements. Based on the information provided, what actions should be taken by Mercury