On September 20, 2020, a customer of Quick Foods became seriously ill after eating at one of the company's restaurants. The customer filed a lawsuit against the company on October 3, 2020. At December 31, 2020, the company estimated that its probable loss in connection with the incident was $75,000. In January 2021, before the company issued its financial statements, a judge ruled in favor of the customer and awarded the customer $100,000 in damages. Should the company recognize the effects of this ruling in its 2020 financial statements?

Answer rating: 100% (QA)

Answer i Yes the company should recognize the effects of this ruling in its 2020 financial statement... View the full answer