PLEASE HELP ME WITH QUESTIONS 4 and 5. Thank you

Sound Audio manufactures and selis audio equipment for automobiles. Engineers notified management in December 2024 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $7.5 million. The fiscal year ends on December 31 . Required: 1. Should this loss contingency be accrued, only disclosed, or neither? 2. What loss, If any, should Sound Audio report in its 2024 income statement? 3. What llability, if any, should Sound Audio report in its 2024 balance sheet? 4. Prepare any journal entry needed. Complete this question by entering your answers in the tabs below. 1. Should this loss contingency be accrued, only disclosed, or neither? 2. What loss, if any, should Sound Audio report in its 2024 income statement? 3. What liability, If any, should Sound Audio report in its 2024 balance sheet? Foter Enter your answers in millions rounded to 1 decimal place (li.e.4, 5,500,000 shouid be entered as 5.5). Complete this question by entering your answers in the tabs below. Prepare any journal entry needed. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first accour millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Circuittown commenced a gift card program in January 2024 and sold $12,700 of gift cards in January, $17,950 in February, and $21,450 in March 2024 before discontinuing further gift card sales. During 2024, gift card redemptions were $6,300 for the January gift cards sold, $6,350 for the February cards, and $4,500 for the March cards. Circuittown considers gift cards to be "broken" (not redeemable) 10 months after sale. Required: 1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2024 ? 2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (explration) of gift cards. 3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2024? 4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2024? Complete this question by entering your answers in the tabs below. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gin cards. Note: if no entry is required for a transactionvevent, select "No joumal entry required" in the first account field. CircuitTown commenced a gift card program in January 2024 and sold $12,700 of gift cards in January, $17,950 in February, and $21,450 in March 2024 before discontinuing further gift card soles. During 2024, gift card redemptions were $6,300 for the January gift cards sold, $6,350 for the February cards, and $4,500 for the March cards. CircuitTown considers gift cards to be "broken" (not redeemable) 10 months after sale. Required: 1. How much revenue will CircultTown recognize with respect to January gift card sales during 2024 ? 2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. 3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2024 ? 4. What liablity for deferred revenue assoclated with gift card sales would Circuittown show as of December 31, 2024? Complete this question by entering your answers in the tabs below. 1. How much revenue will CircultTown recognize with respect to January gift card sales during 2024? 3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2024? 4. What liability for deferred revenue associated with gift card sales would ClrcuitTown show as of December 31, 2024