Sound Audio manufactures and sells audio equipment for automobiles. Engineers notlfied 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 $9.0 million. The fiscal year ends on December 31. Required: 1. Should this loss contingency be accrued, only disclosed, or nelther? 2. What loss, If any, should Sound Audio report in its 2024 income statement? 3. What Ilability, 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? Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Required: 1. Should this loss contingency be accrued, only disclosed, or nelther? 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. Prepare any journal entry needed. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Journal entry worksheet Record the liability on product recall. Note: Enter debits before credits