the ink$-$jet printing division of Same Day Printing has grown tremendously in recent years. Assume the following transactions related to the ink$-$jet division occur during the year ended December $31,2024.$

Same Day Printing is being sued for $$10\mathrm{.}0$ million by Addamax. Plaintiff alleges that the defendants formed an unlawful joint venture and drove it out of business. The case is expected to go to trial later this year. The likelihood of payment is reasonably possible.

Same Day Printing is the plaintiff in a$($n$)$ $$8\mathrm{.}0$ million lawsuit filed against a competitor in the high$-$end color$-$printer market. Same Day Printing expects to win the case and be awarded between $$5\mathrm{.}5$ and $$8\mathrm{.}0$ million.

Same Day Printing recently became aware of a design flaw in one of its ink$-$jet printers. A product recall appears probable. Such an action would likely cost the company between $$400,000$ and $$800,000.$

Required:

Determine the appropriate way Same Day Printing would report the contingencies. Record any amounts as a result of each of these contingencies if required

Same Day Printing is being sued for $$10\mathrm{.}0$ million by Addamax. Plaintiff alleges that the defendants formed an unlawful joint venture and drove it out of business. The case is expected to go to trial later this year. The likelihood of payment is reasonably

possible. Record the adjusting entry.

Same Day Printing is the plaintiff in a$($n$)$ $$8\mathrm{.}0$ million lawsuit filed against a competitor in the high$-$end color$-$printer market. Same Day Printing expects to win the case and be awarded between $$5\mathrm{.}5$ and $$8\mathrm{.}0$ million. Record the adjusting entry.

Same Day Printing recently became aware of a design flaw in one of its ink$-$jet printers. A product recall appears probable. Such an action would likely cost the company between $$400,000$ and $$800,000.$ Record the adjusting entry.