Problem 8.7B Record contingencies (L08-5) Compact Electronics is a leading manufacturer of digital camera equipment. Assume the following transactions occur during the year ended December 31, 2021. 1. Accounts receivable were $27 million (all credit) at the end of 2021. Although no specific customer accounts have been shown to be uncollectible, the company estimates that 1% of accounts receivable will eventually prove uncollectible 2. Compact Electronics is the plaintiff in a $3 million lawsuit filed against a supplier. The suit is in final appeal, and attorneys advise it is virtually certain that Compact Electronics will win and be awarded $15 million 3. In November 2021, Compact Electronics became aware of a design flaw in one of its digital camera models. A product recall appears probable and would likely cost the company $400,000. 4. Compact Electronics is the defendant in a patent infringement lawsuit brought by a competitor It appears reasonably likely Compact Electronics will lose the case, and potential losses are estimated to be in the range of $0.5 to $1.5 million Required: Record any amounts as a result of each of these contingencies (If no entry is required for a transactiop/event, select "No Journal Entry Required in the first account field. Enter your answers in dollars, not in millions. For example, 35.5 million should be View transaction list Journal entry worksheet 2 3 4 Record the estimated uncollectible accounts. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal