Exercise 8-15 (Algo) Record warranties (LO8-5) 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 5% of sales. Sales for the month of December are $560,000. Actual warranty expenditures in January of the following year were $21,000. Required: 1. Does this situation represent a contingent liability? 2. & 3. Record the necessary entries in the Journal Entry Worksheet below. 4. What is the balance in the Warranty Liability account after the entries in Parts 2 and 3? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Does this situation represent a contingent liability? Does this situation represent a contingent liability? < Req 1 Req 2 and 3 >

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