help with 6 and 7 please

Exercise 6. There are times when a company is not sure whether a liability should be actually shown as a dollar amount in the Liability section of the Balance Sheet oc just mentioned in the Notes to the Financial Statements. What are the 2 criteria accountants use to make the decision about these contingent liblities (depedent on a future event) as to indusion on the Balance Sheet? 1) AND 2) If the accountant decides that the contingent lability should not be shown as an amount on the Balance Sheet, is it then always shown and discussed in the Notes to the Financial Statements? Exercise 7. On Dec 1, 200x, Daz Compamy intreduced a new product that induded a one-vear warranty on parts. in December, 1,000 units were sold. Diaz estimates that 5 of these wil be brought back under the warranty for replacement of parts at an average cost of $90 per unit. Prepare (a) the adjusting entry needed at December 3120xx for this contigent Uability and (b) the entry required in January 201, when a defiective unit is replaced for a cost of $50 of laber and 529 in parts from the Supples