A company thought they were going to win a legal settlement. The believed is was "likely and estimable" so they recognized an Accounts Receivable. Does this mean that they must have booked a Credit Sale also? Does this mean they have already recognized revenue from the legal settlement eventhough they could still lose? Follow up question: The company lost in court. They now have to take an after tax charge of $100 million. Do they also have to reverse the Revenue recognition?