Nole, Inc. has been sued by a customer in $20$X$1$ and the amount of damages being requested is known $($$$250,000).$ Nole's legal counsel believes it is reasonably possible that the customer will prevail and the check will be written some time in $20$X$2($assuming the lawsuit is lost$).$

What liability should appear on Nole's $20$X$1$ balance sheet?