21. Philadelphia Memorial Hospital, a not-for-profit entity, estimates that it will make the following cash payments to settle malpractice claims for incidents occurring during the current year: $600,000 to be paid by year-end, and $900,000 to be paid during the following two years. What journal entry must the hospital record to recognize the anticipated malpractice claim payments? a) No journal entry is required. b) Debit Claims Expenditure $1,500,000; Credit Claims Payable $1,500,000 c) Debit Claims Expenditure $600,000; Credit Claims Payable $600,000 d) Debit Claims Expense $600,000; Credit Claims Payable $600,000 e) Debit Claims Expense $1,500,000; Credit Claims Payable $1,500,000