Ludeman Security Systems is a defendant in lawsuits brought against the monitoring service of its installed systems. Damages of $1 million are claimed against Ludeman Security Systems, but the company denies the charges and is vigorously defending itself. In a recent newspaper interview, the president of the company stated that he could not predict the outcome of the lawsuits. Nevertheless, he said management does not believe that any actual liabilities resulting from the lawsuits will significantly affect the company's financial position. Suppose that Ludeman Security Systems' lawyers advise that preliminary judgment of $300,000 has been rendered against the company on April 16. The company will appeal the decision. Required Describe how to report this situation in the Ludeman Security Systems financial statements. Journalize any entry required under ASPE. Explanations are not required Since the court has awarded a judgement against Ludeman Security Systems, what was previously a contingent liability is now a current liability for the known amount of $ 300,000 loss assessed against the company. The financial statements of Ludeman Security Systems would report the following: Ludeman Security Systems Income statement (partial) Balance sheet (partial): Contingent liability for loss Estimated loss for damage claim Loss from damage claim (Note X) Liability for damage claim (Note X) then click Check