The Dune Chemical Company provides chemical, plastic, and agricultural products and services to various consumer markets. The following excerpt is taken from the disclosure notes of Dune's 2015 annual report: In total, the Company's accrued liability for probable environmental remediation and restoration costs was $733 million at December 31, 2015, compared with $765 million at the end of 2014. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Company has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two and a half times that amount. Required: Does the excerpt describe a loss contingency? Under what conditions would Dune accrue such a contingency? What journal entry would Dune use to record this amount of provision (loss)? Complete this question by entering your answers in the tabs below. Disclosure General Journal Does the excerpt describe a loss contingency? Under what conditions would Dune accrue such a contingency? Loss contingency Conditions The Dune Chemical Company provides chemical, plastic, and agricultural products and services to various consumer markets. The following excerpt is taken from the disclosure notes of Dune's 2015 annual report: In total, the Company's accrued liability for probable environmental remediation and restoration costs was $733 million at December 31, 2015, compared with $765 million at the end of 2014. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Company has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two and a half times that amount. Required: Does the excerpt describe a loss contingency? Under what conditions would Dune accrue such a contingency? What journal entry would Dune use to record this amount of provision (loss)? Complete this question by entering your answers in the tabs below. Disclosure General Journal What journal entry would Dune use to record this amount of provision (loss)? (Enter your answers in millions. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record this amount of provision (loss). Note: Enter debits before credits. Event General Journal Debit Credit