Required information Exercise 8-12A Analyze and record a contingent liability (LO8-5) [The following information applies to the questions displayed below] Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company \\( \\$ 2.4 \\) million. The fiscal year ends on December 31. Exercise 8-12A Port 1 Required: 1. Should this contingent liability be reported, disclosed in a note only, or neither? Exercise 8-12A Part 2 2. What loss, if any, should Top Sound report in its 2021 income statement? (Enter your onswer in dollars, not in millions (i.e. 5.5 should be entered as \\( 5,500,000) \\).) Exercise 8-12A Part 3 3. What liability, if any, should Top Sound report in its 2021 balance sheet? (Enter your answer in dollers, not in millions (i.e. \\( \\mathbf{5 . 5} \\) should be entered as \\( 5,500,000) \\). Exercise 8-12A Part 4 4. What entry, if any, should be recorded? (If no entry is required for a particular transaction/event, select \"No Journal Entry Required\" in the first account field. Enter your answers in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).)