5 Problem 8-8B Record contingencies (L08-5) Authors Academic Press faces three potential contingency situations, described below. Authors' fiscal year ends December 31, 2021. 134/2 points awarded Score 1. In August 2021, a worker was injured in an accident, partially as a result of his own negligence. The worker has sued the company for $1.2 million. Legal counsel believes it is reasonably possible that the outcome of the suit will be unfavorable, and that the settlement would cost the company from $300,000 to $600,000. 2. A suit for breach of contract seeking damages of $3 million was filed by an author on October 4, 2021. Legal counsel believes an unfavorable outcome is probable A reasonable estimate of the award to the plaintiff is between $1.5 million and $2.25 millon. No amount within this range is a better estimate of potential damages than any other amount 3. Authors is the plaintiff in a pending court case. Its tawyers believe it is probable that Authors will be awarded damages of $3 million. Reference Required: Determine the appropriate means of reporting each situation for the year ended December 31, 2021, and record any necessary entries of no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered os 5,500,000.) No Transaction Debit Credit General Journal No Journal Entry Required 1 + 2 2 2,250,000 LOSS Contingent Liability 2.250 000 $ 3 No Journal Entry Required