December 20X4, Mrs. Rita Yeargin trips over a giant Rudolphby the mall management company and went into Ingalls' store and cracked her head. with a sprained ankle, bruised elbow and a concussion. Prior to the end of the year, Ms. Yeargin's lawyer files papers to sue both the mall management company and the store Ingalls for $1,000. Ingalls' insurance company policy does not cover accidents. Ingalls' attorney tells it that it is difficult to guess what a jury might do in this case. Ingalls will probably be liable for only 20% of the $1,000,000 since the Rudolph actually belongs to the mall.
a.) Determine if Ingalls needs to record a journal entry on December 31, 20X4, and if so, record
Yes debit lawsuit expense... View the full answer