BJN, Inc. enlists the services of outside counsel to assist in a pending

litigation matter. Facts of 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 highly probable BJN will

lose.

a. Record the appropriate journal entry, if required, for BJN prior to any

actual award of damages.

b. 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.