Austin Inc is facing a lawsuit from a former employee for Title IX discrimination Based on initial evidence, Austin's lawyers believe the case is valid and estimate damages of $500,000 are possible What accounting treatment should Austin use for the lawsult? O A. No action is necessary yet because the lawsuit is pending B. The estimated damages should be recorded on the balance sheet OC. The liability should be recorded by crediting a loss account OD. A note should be made in the financial statements describing the potential lawsuit but nothing else needs to be recorded at this point