Testbank Multiple Choice Question 114 Concord 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 $807000. What is the required journal entry as a result of this litigation? O Debit Litigation Expense for $443850 and credit Litigation Liability for $443850. O Debit Litigation Expense for $ 807000 and credit Litigation liability for $ 807000. O Debit Litigation Expense for $ 363150 and credit Litigation Liability for $ 363150. O No journal entry is required