Multiple Choice
A company has a lawsuit pending with regard to patent infringement. The amount of the loss can be estimated and has a probable chance of occurrence. What journal entry is required?
A) debit Lawsuit Loss and credit Cash
B) debit Estimated Lawsuit Loss and credit Cash
C) debit Cash and credit Estimated Lawsuit Liability
D) debit Estimated Lawsuit Loss and credit Estimated Lawsuit Liability
Correct Answer:
Verified
Correct Answer:
Verified
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