Help Save & Exit Submit Check my work e following selected transactions relate to contingencies of Classical Tool Makers, Inc., which began operations in July 2018. Classical's fiscal year ends on December 31. Financial statements are issued in April 2019. Classical's products carry a one-year expected to approximate5% of sales. Sales were $2 were recorded as warranty expense when incurred. warranty against manufacturer's defects. Based on previous experience, warranty costs are 1 million (all credit) for 2018. Actual warranty expenditures were $40100 and 2. Although no customer accounts have been shown to be uncollectible, Classical estimates tha 3. In December 2018, the state of Tennessee filed suit against Classical, seeking penalties for violations of clean air laws. On January 4. Classical is the plaintiff in a $4.1 million lawsuit filed against a supplier. The suit is in final appeal and attorneys advise that it is 5. In November 2018, Classical became aware of a design flaw in an industrial saw that poses a potential electrical hazard. A product 6. Classical offered $30 cash rebates on a new model of jigsaw. Customers must mail in a proof-of-purchase seal from the package ed t 2% of credit sales will eventually prove uncollectible. 23, 2019, Classical reached a settlement with state authorities to pay $1.6 million in penalties virtually certain that Classical will win the case and be awarded $2.6 million. recall appears unavoidable. Such an action would likely cost the company $510,000. ok ces plus the cash register receipt to receive the rebate. Experience suggests that 65% of the rebates will be claimed. Ten thousand and one hundred of the jigsaws were sold in 2018. Total rebates to customers in 2018 were $106,000 and were recorded as promotional expense when paid. Required: 1-a Prepare the year-end entries for any amounts that should be recorded as a result of each of the above contingencies 1-b Indicate whether a disclosure note is needed for the above transactions abs below Complete this question by entering your answers in the t 2 Check my work Required 1-a Prepare the year-end entries for any amounts that should be recorded as a result of each of the above contingencies 1-b Indicate whether a disclosure note is needed for the above transactions Complete this question by entering your answers in the tabs below. ped Required A Required B ok Prepare the year-end entries for any amounts that should be recorded as a result of each of the above contingencies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) ces View transaction list Journal entry worksheet 2 4 5 Record any necessary year-end entry related to the warranties. Note: Enter debits before credits. CE View transaction list 1 Record any necessary year-end entry related to the warranties ed 2 Record any necessary year-end entry related to uncollectible accounts. 3 Record any necessary year-end entry related to clean air law violations es dit 4 Record any necessary year-end entry related to the lawsuit filed against a supplier. Record any necessary year-end entry related to a product recall 5 Note journal entry has been entered View general journal Clear entry warranties pped Record any necessary year-end entry related to uncollectible accounts. 2 ook Record any necessary year-end entry related to clean air law violations. int 3 nces 4 Record any necessary year-end entry related to the redit lawsuit filed against a supplier Record any necessary year-end entry related to a product recall. 5 6 Record any necessary year-end entry related to rebates. Note: -journal entry has been entered Clear entry View general journal Record entry plus the register receipt to receive the rebate. Experience suggests that 65% of the rebates will be claimed. Ten thousand and cash one hundred of the jigsaws were sold in 2018. Total rebates to customers in 2018 were $106,000 and were recorded as promotional expense when paid. Required 1-a Prepare the year-end entries for any amounts that should be recorded as a result of each of the above contingencies. 1-b Indicate whether a disclosure note is needed for the above transactions. Complete this question by entering your answers in the tabs below ok Required ARequiredtB ces Indicate whether a disclosure note is needed for the above transactions. Event 1 Event 2 Event 3 Event 4 Event 5 Event 6 K Required A RequiredB