For step 2 the following question below. please write the journal entries.

1. Record the 2021 sales.

2. Record the accrued liability and expense.

3. Record the actual expenditures.

For Step 3 please show what amount should cupola report as a liability at December 31, 2021?

Cupola Awning Corporation introduced a new line of commercial awnings in 2021 that carry a two-year warranty against manufacturer's defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 3\% of sales. Sales and actual warranty expenditures for the first year of selling the product were: Required: 1. Does this situation represent a loss contingency? 2. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2021 3. What amount should Cupola report as a liability at December 31,2021? Complete this question by entering your answers in the tabs below. Journal entry worksheet Note: Enter debits betore credits. Journal entry worksheet Record the accrued liability and expense. Note: Enter debits before credits. Journal entry worksheet 1 2 Record the actual expenditures. Note: Enter debits before credits. Required: 1. Does this situation represent a loss contingency? 2. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2021. 3. What amount should Cupola report as a liability at December 31,2021 ? Complete this question by entering your answers in the tabs below. What amount should Cupola report as a liability at December 31,2021