A fashion designer received a claim for £100,000 as damages because some wedding garments were not delivered in time for a wedding. The designer admits the delay but disputes the amount of the claim, pointing out that alternative wedding garments cost no more than £18,000. How would you advise the designer to treat the claim when finalising the financial statement for the year?

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a Ignore the claim b Account for a liability of £100,000 c Account for a liability of £18,000 d Account for the best estimate as liability