Question 10 of 40 -/1 View Policies Current Attempt in Progress Sunland Shoes Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $797000. What is the required journal entry as a result of this litigation? Debit Litigation Expense for $478200 and credit Litigation Liability for $478200 O No journal entry is required. O Debit Litigation Expense for $797000 and credit Litigation liability for $797000. O Debit Litigation Expense for $318800 and credit Litigation Liability for $318800. Save for Later Attempts: 0 of 1 used Submit