"Contingencies

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Determine if an entry should be made or not and make the required journal entries as necessary.

Please include all steps of calculations for my references. Thanks!

n. Provisions (Contingencies)
During 2020, Aylmer was involved in two separate lawsuits:
In 2020, a customer who visited the Aylmer corporate office slipped and fell. A lawsuit was
filed and a court appearance in-front of a judge occurred. Aylmer's attorney believes that it is
probable and very likely that Aylmer will be liable for damages in the amount of $250,000 as a
result of this suit.
In 2020, a separate lawsuit was brought against Aylmer. Aylmer was sued for patent
infringement by Kingsmill Corp. Aylmer's attorney believes that it is not probable that Aylmer
will be liable for $450,000 of damages claimed by Kingsmill.
Transcribed Image Text:n. Provisions (Contingencies) During 2020, Aylmer was involved in two separate lawsuits: In 2020, a customer who visited the Aylmer corporate office slipped and fell. A lawsuit was filed and a court appearance in-front of a judge occurred. Aylmer's attorney believes that it is probable and very likely that Aylmer will be liable for damages in the amount of $250,000 as a result of this suit. In 2020, a separate lawsuit was brought against Aylmer. Aylmer was sued for patent infringement by Kingsmill Corp. Aylmer's attorney believes that it is not probable that Aylmer will be liable for $450,000 of damages claimed by Kingsmill.
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