$1$ Same Day Printing is being sued for $$9\mathrm{.}4$ million by

Addamax. Plaintiff alleges that the defendants formed an

unlawful joint venture and drove it out of business. The

case is expected to go to trial later this year. The

likelihood of payment is reasonably possible. Record the

adjusting entry.

$2$ Same Day Printing is the plaintiff in a$($n$)$ $$7\mathrm{.}4$ million

lawsuit filed against a competitor in the high$-$end color$-$

printer market. Same Day Printing expects to win the

case and be awarded between $$4\mathrm{.}9$ and $$7\mathrm{.}4$ million.

Record the adjusting entry.

$3$ Same Day Printing recently became aware of a design

flaw in one of its ink$-$jet printers. A product recall appears

probable. Such an action would likely cost the company

between $$340,000$ and $$740,000.$ Record the adjusting

entry.