Question about contingencies:

Fallon company discovered that a product it began manufacturing and selling in 2016 has defective bearings. They decided to issue a recall notice in newspapers and offer to replace the bearings. It estimates the cost of 200,000 for these repairs. No lawsuits have been filed for injury claims.

We may need to report a 200,000 contingencies liability in balance sheet, right? What's the journal entry for this contingent item? In balance sheet, how do we balance this liability?