Rotary Tools sells power tools and backs each product it selis with o one-year warranty against defects. Based on previous experience; the company expects warranty costs to be approximately 5% of sales, By the end of the first yeac, sales are 5750,000 . Actual warranty expenses incurred so fnt are $12.000. Required: 1. Does this situation represent a contingent liabilify? 2. 5 3. Recond the appropriate journal entries for the warranties. 4. What is the ending balance in the Warranty Llablity account after the entries in parts 2 and 3 ? Complete this question by entering your answers in the tabs below. Does this situation represent a contingent liablity