The journal entry needs to be completed!

1 Record the contingent liability if needed.

2. Record the contingent liability if needed.

3. Record the contingent liability if needed.

4. Record the contingent gain if needed.

Leisure Luggage manufactures a line of luggage designed for airline travel. Assume the following transactions occur during the year ended December 31, 2018. 1. In November 2018, Leisure Luggage became aware of a design flaw in one of its lines of luggage. A product recall is probable and is estimated to cost the company between $300,000 and $500,000. 2. Leisure Luggage is the defendant in a patent infringement lawsuit brought by a competitor. It appears reasonably possible Leisure Luggage will lose the case, and potential losses are estimated to be $1.2 million. 3. Credit sales were $12 million for 2018. Although no customer accounts have been shown to be uncollectible, the company estimates that 3% of credit sales will eventually prove uncollectible. 4. Leisure Luggage is the plaintiff in a lawsuit filed against a supplier. The suit is in final appeal, and attorneys advise it is virtually certain that Leisure Luggage will win and be awarded $800,000. Required: Record any amounts as a result of each of these contingencies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) View transaction list Journal entry worksheet 3 4 Record the contingent liability if needed. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal