On Bring Your Daughters and Sons to Work Day at Winglo Corporation not only did Sandy Gilhaus, a Winglo employee, bring her ten year old daughter Sarah to work, but ALAN also demonstrated new sport equipment at Winglo on that day. After the demonstration of a highly sophisticated machine, Sandy attempted to adjust the monitor on the machine. She inadvertently knocked the machine off the desk and onto the floor. It shattered with a piece of the metal striking Sarahs right big toe. To make a long story short, Sarahs toe needed four stitches to stop the bleeding and Sandy has blamed the demonstrator of the machine for placing it in a dangerous position. The damages to this point have been minimal as Sandy drove Sarah to their HMO and paid the $20 copay for an office visit. Yet, the Gilhaus family has sued ALAN for the following: Future plastic surgery Emotional distress to Sarah Emotional distress to Sandy Total $5,000 500,000 1,200,000 $1,705,000 ALANs lawyers believe that this case, with the possible exception of the plastic surgery (for which the HMO will pay), is frivolous. ALAN has no insurance to cover this sort of liability. If this case goes to court, ALANs on staff attorneys will handle the case. To eliminate any possible bad press from this case, ALANs lawyers suggested settling for a nuisance value of $10,000. Sarahs family rejected this offer out of hand and asked for $200,000 to settle this out of court. ALAN has decided, at least at this point, to refuse any further settlement offer. In their lawyers letter to you ALANs lawyers indicated that they believe that ALAN has just and meritorious defense available to fight this case. Furthermore, ALANs legal counsel for the case indicated that while she agrees that this case is largely frivolous, litigation involving a young child is somewhat of a crap shoot and that making a definite prediction on the outcome of the case is impossible. In the end she believes the judgment will likey not even include the $5,000 for the plastic surgery. What entry or disclosure, if any, is necessary in this circumstance?