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For each of the following items, indicate the appropriate accounting treatment: a) A customer has sued Text Tech for $1 million. Text Tech will likely

For each of the following items, indicate the appropriate accounting treatment: a) A customer has sued Text Tech for $1 million. Text Tech will likely successfully defend itself. The amount would have a significant impact on Text Tech's financial position. Accrue the estimated liability in the balance sheet and report a loss on the income statement. Disclose the possible liability in the notes to the financial statements. Neither record nor disclose

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