Contingent Liabilities}

OBJECTIVE 3 SLC Electronics is the plaintiff in a class-action lawsuit. Their attorney has written a letter that it is now extremely likely that SLC will lose the lawsuit and be forced to pay \(\$ 3,000,000\) in damages.

\section*{Required:}

Prepare the necessary journal entry. If no entry is required state "none." Any recognition will be to Other Expense and Lawsuit Payable.

\section*{Brief Exercise