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Bonita Inc. is involved in a lawsuit at December 3 1 , 2 0 2 5 . Prepare the December 3 1 entry assuming it

Bonita Inc. is involved in a lawsuit at December 31,2025. Prepare the December 31 entry assuming it is probable that Bonita will be liable for $894,400 as a result of this suit. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Prepare the December 31 entry, if any, assuming it is not probable that Bonita will be liable for any payment as a result of this suit. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)

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