Current Attempt in Progress

Sweet Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is probable that Sweet will lose the case and that a reasonable estimate of damages to be paid by Sweet is $$315,000.$ In light of this case, Sweet is considering establishing a $$103,400$ self$-$insurance allowance.

What entry, if any, should Sweet record to recognize this loss contingency? $($If no entry is required, select $"$No Entry" for the account titles and enter $O$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit