Leisure Luggage manufactures a line of luggage designed for airline travel. Assume the following transactions occur during the year ended December $31,2024.$

Accounts receivable were $$28\mathrm{.}8$ million $($all credit$)$ at the end of $2024.$ Although no specific customer accounts have been shown to be uncollectible, the company estimates that $1\%$ of accounts receivable will eventually prove uncollectible.

Leisure Luggage is the plaintiff in a $$4\mathrm{.}8$ million lawsuit filed against a supplier. The suit is in final appeal, and attorneys advise it is virtually certain that Leisure Luggage will win and be awarded $$3\mathrm{.}3$ million.

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 $$580,000.$

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 $$2\mathrm{.}3$ to $$3\mathrm{.}3$ 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$/$eventselect $"$No Joumal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $$5\mathrm{.}5$ million should be entered as $5,500,000.)$

Journal entry worksheet

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