The following legal claims exist for the Doucet Advertising Agency. Classify the required accounting treatment for each legal situation as (a) a liability should be recorded, or (b) the legal claim need only be described in the notes to the financial statements. a. Doucet faces a probable loss on a pending lawsuit; however, the amount of the judgment cannot be reasonably estimated b. A plaintiff is suing Doucet Company for a damage award of $1,200,000; it is not probable that the plaintiff will win the case. c. Doucet Company estimates damages of another case at $3,000,000 and it is probable that Doucet will lose the case