Illustrate what is the required journal entry as a result

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Reference no: EM13129407

Tender Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40 % chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $500,0000. What is the required journal entry as a result of this litigation?

Reference no: EM13129407

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