Cupola awning corporation introduced a new line of commercial awnings in 2018 that carry a two-year warranty against manufacturer’s defects. based on their experience with previous product introductions, warranty costs are expected to approximate 3% of sales. sales and actual warranty expenditures for the first year of selling the product were: sales actual warranty expenditures $5,780,000 $38,500 required: 1. does this situation represent a loss contingency? 2. prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2018. 3. what amount should cupola report as a liability at december 31, 2018?

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

It is answer choice (a.) true.