Exercise 8-13 (Algo) Analyze and record a contingent liability (LO8-5) Top Sound International designs and sels high-end stereo equipment for auto and home use. Engineers notifed managoment in December 2024 of a circuit flow in an amplifer that poses a potentiat fre hazard. Further investigation indicates that a product recall is probable, nstimated to cost the company $3.4 million. The fiscal year ends on December 31 Aequired: 1. Should this cogtingent Uability be reported, disclosed in a note only, or neilser? 2. What loss, d any. should Top Sound report in ins 2024 income statement? 3. What lability if anyy, should Top Sound report in its 2024 balance sheer? 4. What entry, if any, should be recorded? Complete this question by entering your anwwers in the tabs below. Should this conhingent liabinty be reported, disclosed in a note only, or neither