Exercise 8-12A Analyze and record a contingent liability (LO8-5) (The following information applies to the questions displayed below.] Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.3 million. The fiscal year ends on December 31. Exercise 8-12A Part 1 Required: 1. Should this contingent liability be reported, disclosed in a note only, or neither? This contingent liability should be reported. reported. disclosed in a note only. neither reported nor disclosed