Question: For each separate situation, indicate whether Cruz Company should () record a liability. (b) disclose in notes, or have no disclosure. 1. Cruz Company guarantees

For each separate situation, indicate whether Cruz Company should () record a liability. (b) disclose in notes, or have no disclosure. 1. Cruz Company guarantees the $115,000 debt of a supplier. It is not probable that the supplier will default on the debt. A disgrunted employee is suing Crur Company, Legal advisors believe that the company will likely need to pay damages, but the amount cannot be reasonably estimated

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