Mercury Inc. is facing a major lawsuit on January $1$st$,2023,$ as some patients suffered severed medical problems from its medicines and are claiming $50$ million dollars. Mercury reasonably expects to pay out $($inclusive of litigation expenses$)5$ million dollars with a $55\%$ probability and believes this lawsuit will end on December $31$st$,2023.$ Write any journal entries or actions that Mercury should take with respect to their financial statements that they will file on March $31$st$,2023.$