iul wher the balance sheet identifies them as either current or long ehn 18) Contingent liabilities must be recorded if: A) The amount owed cannot be reasonably estimated. O The future cvemt is probable and the amiounh orwed cam be reasonably extimated. D) The future event is reasonably possible but not estimable. E) The future event is remote. 19) On December l , Victoria Company signed a 90-da y, 6% note payable, with a face value of $15,000, what amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.) A) $225 B) $75 C) $900 D) S0 E) $300 earn vacation pay at the rate of one day per month. During the month of July, 25 employees vacation day each. Their average daily wage is $100 per day. What is the amount of vacation qualify for one benefit expense to be recorded for the month of July? A) S250 B) S25 C) $2,500 D) $25,000 E) S100 21) A company sold $12,000 worth of bicycles with an extended warranty. The company's experience is that warranty expense averages 2% of sales. The current period's entry to record the warranty expense is: A) Debit Warranty Expense $240; credit Cash $240. B) Debit Prepaid Warranties $240; credit Warranty Expense $240. C) Debit Sales Allowances $240; credit Estimated Warranty Liability $240. D) Debit Warranty Expense $240; credit Estimated Warranty Liability $240. E) Debit Estimated Warranty Liability $240; credit Cash $240