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MiamiHhas entered a lawsuit against one its former suppliers who failed to deliver goods as ordered and failed to either reimburse MiamiHfor the goods or to replace the goods. The faulty products resulted in lost sales to MiamiHof $950,000 as well as damage to MiamiH's reputation thus is seeking damages in the amount of $2,000,000. MiamiH's legal team believes MiamiHand the customer will reach an out of court settlement and estimates the range of the settlement to be between $750,000 and $1,200,000 but believes that $1,000,000 would be the most likely settlement.
Question 1: Show journal entry.
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