Sheridan 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 45% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $808000. What is the required journal entry as a result of this litigation? Debit Litigation Expense for $808000 and credit Litigation liability for $808000. No journal entry is required. Debit Litigation Expense for $363600 and credit Litigation Liability for $363600. Debit Litigation Expense for $444400 and credit Litigation Liability for $444400