Leisure Luggage manufactures a line of luggage designed for airline travel. Assume the following transactions occur during the year ended December 31, 2024. 1. Accounts receivable were $28 million (all credit) at the end of 2024. Although no specific customer accounts have been shown to be uncollectible, the company estimates that 2% of accounts receivable will eventually prove uncollectible. 2. Leisure Luggage is the plaintiff in a $4 million lawsuit filed against a supplier. The suit is in final appeal, and attorneys advise it is virtually certain that Leisure Luggage will win and be awarded $2.5 million. 3. In November 2024, Leisure Luggage became aware of a design flaw in one of its pieces of luggage. A product recall appears probable and would likely cost the company $500,000. 4. Leisure Luggage is the defendant in a patent infringement lawsuit brought by a competitor. It appears reasonably likely Leisure Luggage will lose the case, and potential losses are estimated to be in the range of $1.5 to $2.5 million. Required: Determine the appropriate way Leisure Luggage would report the contingencies. Record any amounts as a result of each of these contingencies if required. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.)