Carnes electronics sells consumer electronics that carry a 90-day manufacturer’s warranty. at the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. during the year, carnes received $412,000 for these extended warranties (approximately evenly throughout the year). required: 1-a. does this situation represent a loss contingency? 1-b. how should it be accounted for? 2. prepare journal entries that summarize sales of the extended warranties (assume all credit sales) and any aspects of the warranty that should be recorded during the year.

About 20 years ago, sturdy light, inc., produced a sturdy, lightweight backpack in a market that was rapidly growing. sturdy light became a leader in this market. eventually, the backpack market reached the maturity stage and slowed down. however, by this time, sturdy light had developed a strong brand name and continued to steadily lead the market. which of the following describes this scenario? a. sturdy light was a star that developed into a cash cow. b. sturdy light was a question mark that developed into a star. c. sturdy light was a dog that developed into a question mark. d. sturdy light was a cash cow that developed into a star.