Check my work Problem 8-7B Record contingencies (LO8-5) Compact Electronies is a leading manufacturer of digital camera equipment. Assume the following transactions occur during the year ended December 31, 2021. 1. Accounts receivable were $27.9 million (all credit) at the end of 2021. Although no specific customer accounts have been shown to be uncollectible, the company estimates that 1% of accounts receivable will eventually prove uncollectible. 2. Compact Electronics is the plaintiff in a $3.9 million lawsuit filed against a supplier. The suit is in final appeal, and attorneys adviso it is virtually certain that compact Electronics will win and be awarded $2.4 million 3. In November 2021. Compact Electronics became aware of a design flaw in one of its digital camera models. A product recall appears probable and would likely cost the company $490,000 4. Compact Electronics is the defendant in a potent Infringement towsuit brought by a competitor. It appears reasonably likely Compact Electronics will lose the case, and potential losses are estimated to be in the range of $14 to $2.4 million Required: Record any amounts as a result of each of these contingencies. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list Journal entry worksheet 1 3 4 92 89 + Journal entry worksheet Journal entry worksheet Record the contingent liability if needed. Note: Enter debits before credits. General Journal Debit Credit Transaction 3 Record entry Clear entry View general journal 5 of 6 Journal entry worksheet