Required information Exercise 8-14B Record warranties (LO8-5) [The following information applies to the questions displayed below.) A company restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it seils with a 90-day warranty against defects. Based on previous experience, the company expects warranty costs to be approximately 5% of sales. Sales for the month of December are $560,000. Actual warranty expenditures in January of the following year were $21,000. Exercise 8-14B Part 1 Required: 1. Does this situation represent a contingent liability? Yes or No Yes No Required Information Exercise 8-148 Record warranties (LO8-5) [The following information applies to the questions displayed below.) A company 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, the company expects warranty costs to be approximately 5% of sales. Sales for the month of December are $560,000. Actual warranty expenditures in January of the following year were $21.000. Exercise 8-14B Parts 2 & 3 2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet