The year under audit is year 2 . During the course of the year 2 audit of the company, the auditor discovered the following situations that may or may not require an adjusting journal entry. Each audit finding is independent of any of the other findings. Click on the associated cell and select the account that would comprise the adjusting journal entry, if required, to correct the audit finding. Accounts may be used once, more than once, or not at all. 2. In the last week of year 2, the company recorded revenue for services rendered to some clients in year 3. 3. During year 2 a a former client sued the company for inappropriate work. Legal counsel has advised that it is "reasonably possible" that the company will be assessed damages. An amount can be estimated. Select an option below Cash Accounts receivable Other current assets Property and equipment Accounts payable Accrued liabilities Revenues Oneratinn exnenses Operating expenses Interest expense Other income Disclosure but no entry required No entry or disclosure required