An estimated loss from a loss contingency that is probable and for which the amount of the loss can be reasonably estimated should- (choose the correct answer)

-be accrued by debiting an appropriated retained earnings account and crediting a liability account or an asset account.

-not be accrued but should be disclosed in the notes to the financial statements.

-be accrued by debiting an expense account and crediting a liability account or an asset account.

-be accrued by debiting an expense account and crediting an appropriated retained earnings account.