INTERMEDIATE ACCOUNTING(LL-W/WILEY+)
INTERMEDIATE ACCOUNTING(LL-W/WILEY+)
17th Edition
ISBN: 9781119598589
Author: Kieso
Publisher: WILEY
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Chapter 13, Problem 20Q
To determine

Contingent liability: A contingent liability takes place as a result of loss contingency. There is a dependency of contingent liability over the future event that either occurs or not. It is recorded in the accounts only when the amount is probable to occur and there is a reasonable estimate of the amount.

To determine the way by which the terms probable, reasonably possible and remote are connected to contingent liabilities.

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On December 31, 2023, Blossom Company sells production equipment to Wildhorse Inc. for $54,100. Blossom includes a one-year| assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31. 2023. Blossom estimates the prices to be $50,000 for the equipment and $4,100 for the cost of warranty.wrenare a cinoecomnounc ourna entwy torecor nis rancacon on eremner s1. هnorم an rحمte مocotبهمه co0 Prepare a single compound journal entry to record this transaction on December 31, 2023. Ignore any related cost of goods sold entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)  I currently have these 2 correct: Cash 54100   need help need help need help Warranty Liability    4100 need help need help need help show work on how…
Give me the answer in a clear organized table please. Thank you!
Give me the answer in a clear organized table please. Thank you!
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