Required information [The following information applies to the questions displayed below.) Computer Wholesalers 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, Computer Wholesalers expects warranty costs to be approximately 6% of sales. Sales for the month of December are $570,000. Actual warranty expenditures in January of the following year were $21,500. Required: 1. Does this situation represent a contingent llabillty? Yes or No Yes No NU Required Information [The following information applies to the questions displayed below.) Computer Wholesalers 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, Computer Wholesalers expects warranty costs to be approximately 6% of sales. Sales for the month of December are $570,000. Actual warranty expenditures in January of the following year were $21,500 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 1 2 Record the contingent liability for warranties, Note: Enter debit before credit Next Journal entry worksheet 1 2 Record the contingent liability for warranties. Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general Journal Required information Journal entry worksheet