Show the journal entry to record the legal liability arising from the

Ask attorney if liability from the lawsuit is probable, reasonably possible, or remote.

Recognize a contingent liability if in attorney’s opinion liability is probable.

 

What is the entry assuming 1 year liability?

 

Show the journal entry to record the legal liability arising from the potential lawsuit.  (If you find there is no liability, show the entry needed if there were liability)

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