Franks Fireworks has a pending lawsuit because of an accident that a customer had with one of
Fantastic news! We've Found the answer you've been seeking!
Question:
Frank’s Fireworks has a pending lawsuit because of an accident that a customer had with one of Frank’s products. The suit has been filed and based on similar suits against other fireworks companies, Frank believes that it is probable that it will lose the lawsuit. However, the cost of the suit to Frank’s cannot be accurately estimated.
Required
Describe how Frank’s should treat this contingent liability.
Related Book For
Financial and Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
Posted Date: