Jackson Hole Enterprises Limited runs several ski resorts in the United States. As a result of a landslide during the most recent financial year ended December 2020 at one of their resorts, several skiers suffered injuries. The latest company reporting for financial results stated that due to a breakdown in internal controls, the companys public liability insurance coverage had lapsed before the incident. Joe Skife, an analyst with a small brokerage asked the Managing Director during an analyst results briefing whether any accounting adjustments have been made in respect of the incident. The Managing Director replied that it has not, it is still making that assessment, and no money has been paid to injured skiers for their medical costs.

Joe is going to adjust his model for an estimated $500,000 of costs associated with this disaster. What journal entry would reflect this adjustment for the estimated costs as at the financial year ended 2020?