Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2024 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.6 million. The fiscal year ends on December 31, Required: 1. Should this contingent liability be reported, disclosed in a note only, or neither? 2. What loss, if any, should Top Sound report in its 2024 income statement? 3. What liability, if any, should Top Sound report in its 2024 balance sheet? 4. What entry, if any, should be recorded? Required 1 Required 2 Required 3 Required 4 Should this contingent liability be reported, disclosed in a note only, or neither? This contingent liability should be uired 2 > 2 reported. disclosed in a note only. neither reported nor disclosed. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What loss, if any, should Top Sound report in its 2024 income statement? (Enter your answer in dollars, not in millions (e. 5.5 million should be entered as 5,500,000).) Loss to be reported Required 1 Required 3 > Required 1 Required 2 Required 3 Required 4 What liability, if any, should Top Sound report in its 2024 balance sheet? (Enter your answer in dollars, not in millions (.e. 5.5 million should be entered as 5,500,000).) Liability to be reported Journal entry worksheet 1 Record the contingent liability if needed. Note: Enter debits before credits. saction General Journal Debit Credit 1 Record entry Clear entry View general journal