Transcribe Co. is engaged in transport services . A lawsuit was filed against Transcribe Co. regarding road accident that 20 * 1 Transcribe Co.'s legal counsel occurred late in December believes that Transcribe Co. will probably lose the case and pay damages . Sufficient data is available to make a reliable estimate of the damages .

1.should transcribe co. accrue a provision on December 31, 20x1? provide a brief explanation of your answer.

2. transcribe co.'s best estimate of the payment for damages is 4M. what is the entry to accrue the provision?