Carnes Electronics selis consumer electronics that carry a 90 -day manufacturer's warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge, During the year, Carnes recelved $414,000 for these extended warrantios, and on average the warrantles were 20% expired by year eth. Required: 1-a. Does this situation represent a loss contingency? 1-b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warranties and recognition of any revenue associated with those warranties. Complete this question by entering your answers in the tabs below. Does this situation represent a loss contingency