Daniel Company provided the following selected transactions related to contingencies. The fiscal year ends December 31, 2024. Financial statements are issued on April 1, 2025. In December 2024, Daniel Company became aware of an engineering flaw in a product that poses a potential risk of injury. As a result, a product recall appears inevitable. This move would likely cost the entity P1,500,000. In November 2024, the City of Manila filed suit against Daniel Company asking civil penalties and injunctive relief for violations of clean water laws. Daniel Company reached a settlement with the city government authorites to pay P4,200,000 in penalties on February 15, 2025. Daniel Company is the plaintiff in a P4,000,000 lawsuit filed against a customer for costs and lost profit from contracts rejected in 2024. The lawsuit is in final appeal and attorneys advised that it is probable that Daniel Company will be awarded P3,000,000. Required: Prepare the appropriate journal entries on December 31, 2024 as a result of each of the contingencies. If no journal entry is indicated, state the reason why