Mingle, Inc., a manufacturer of cleaning products, is preparing annual financial statements at December 31, 2022. Because of a recently proven health hazard in one of its cleaning products, the U.S. government has clearly indicated its intention of having Mingle recall all bottles of that product sold in the last six months. The management of Mingle estimates that this recall would cost $850,000. What accounting recognition, if any, should be accorded this situation?

A) expense and equity restriction of $850,000

B) expense and contingent liability of $850,000

C) note disclosure only

D) no recognition