6. Quayle Company has been sued by a customer who claims injury from use of Quayle's product. The company's lawyers and a consultant believe that the likelihood of a judgment against Quayle is remote. What should Quayle do to account for this potential liability?

A-)recognize the liability and report it on the balance sheet

B-)provide disclosure in the footnotes to the financial statements

C-)report an allowance account on the balance sheet

D-)do nothing