Panama Shirt Designs is a defendant in litigation involving an employee accident in its manufacturing plant.

Required:

Record any necessary adjusting entry for each of the following scenarios. $($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

The likelihood of a loss occurring is probable and the estimated loss is $$650,000.$

The likelihood of a loss occurring is probable and the loss is estimated to be in the range of $$550,000$ to $$750,000.$

The likelihood of a loss occurring is reasonably possible and the estimated loss is $$650,000.$

The likelihood of a loss occurring is remote, while the estimated potential loss is $$650,000.$