Record Warranties Complete journal entry

Does this situation represent a conting 2 nt liability? Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/eve Journal Entry Required" in the first account field.) vilat is Lre Dalance in the Warranty Liability a Exercise 8-15 (Algo) Record warranties (LO8-5) Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading thelr 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 5% of sales. Sales for the month of December are $590,000. Actual warranty expenditures in January of the following year were $22,500. Required: 1. Does this situation represent a contingent liability? 2. \& 3. Record the necessary entries in the Journal Entry Worksheet below. 4. What is the balance in the Warranty Llability account after the entries in Parts 2 and 3 ? Record the actual warranty expenditures. Note: Enter debits before credits