$($b$)$

Under existing standards in IAS $37,$ prepare the December $31$ entry, if any, assuming it is probable $($although not likely$)$ that G&S will be liable for a payment as a result of this suit. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit