Loss Contingencies Loss contingency is a contingency where existing situation or circumstances where potential losses are resolved and thus, future events are occurred. Examples for loss contingency are as follows: 1. Possible repair to a product under any warranty 2. Defendant in a lawsuit 3. Uncollectible receivables To explain: The reason reports this charge of over $1 billion entirely in one quarter.

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Chapter 13, Problem 13.18BYP

(1)

To determine

Loss Contingencies

Loss contingency is a contingency where existing situation or circumstances where potential losses are resolved and thus, future events are occurred. Examples for loss contingency are as follows:

1. Possible repair to a product under any warranty

2. Defendant in a lawsuit

3. Uncollectible receivables

To explain: The reason reports this charge of over $1 billion entirely in one quarter.

(2)

To determine

To explain: the conservatives of warranty estimate.

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