BJN, Inc. enlists the services of outside counsel to assist in a pending litigation matter. Factsof the case indicate BJN may indeed have loss exposure to CMN, Inc. for infringement.Under such case, BJN Inc. could end up paying $10,000,000 when it settles. It is highlyprobable BJN will lose.

1. Record the appropriate journal entry, if required, for BJN prior to any actual award of damages.
2. Record the journal entry if the case settled for $8,500,000

Note:Make sure to format your entries properly, whether you are using a table or plain text entry.