The following selected transactions relate to contingencies of Mason Inc., which began operations in July 2021. Mason's fiscal year ends on December 31. Financial statements are published in April 2022. Required: Prepare the appropriate journal entries that should be recorded as a result of each of the contingencies described below. If no journal entry is indicated, state why. 1. No customer accounts have been shown to be uncollectible as yet, but Mason estimates that 4% of credit sales will eventually prove uncollectible. Sales were $275 million (all credit) for 2021. 2. Mason offers a one-year warranty against manufacturer's defects for all its products. Industry experience indicates that warranty costs will approximate 2.5% of sales. Actual warranty expenditures were $4.2 million in 2021 and were recorded as warranty expense when incurred. 3. Mason is the plaintiff in a $25 million lawsuit filed against a customer for costs and lost profits from contracts rejected in 2021. The lawsuit is in final appeal and attorneys advise that it is virtually certain that Mason will be awarded $15 million.