#4 Yondu Corporation is being sued by one of its customers, and Yondu believes it is 'reasonably possible that the company will lose the lawsuit. If Yondu loses the suit, the company estimates it will owe $1,000,000 to the plaintiff. Which of the following accounting actions should Yondu take with respect to this lawsuit? Record a journal entry debiting 'lawsuit expense' and crediting contingent lawsuit liability Disclose this information to investors but do not record a journal entry No action is required