1. Quayle Company has been sued by a customer who claims injury from use of Quayles product. The companys lawyers and a consultant believe the likelihood of a judgment against Quayle is remote. What should Quayle do to account for this potential liability? (Points : 2) Recognize the liability and report it on the balance sheet. Provide disclosure in the footnotes to the financial statements. Report an allowance account on the balance sheet. Do nothing