a supplier sued LEC a private company (aspe) for $7,000,00 alleging breach of contract. LEC's legal counsel estimates that there is a high likelihood of success. based on its experience with cases of this nature, the legal counsel estimates that if successful, the supplier will be awarded $5,000,000 to $6,500,000, with all payouts in this range being equally likely.

a) indicated if contingent liability is required.

b) if required then record the journal entry