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Question - BJN, Inc. enlists the services of outside counsel to assist in a pending litigation matter. Facts of the case indicate BJN may indeed have loss exposure to CMN, Inc. for infringement. Under such case, BJN Inc. could end up paying $10,000,000 when it settles. It is highly probable BJN will lose.
Required -
a. Record the appropriate journal entry, if required, for BJN prior to any actual award of damages.
b. Record the journal entry if the case settled for $8,500,000.
Note: Make sure to format your entries properly, whether you are using a table or plain text entry.
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