Your firm is currently engaged by a snack food manufacturer located in Northern Westchester County. The Company has a demand loan on its books as well as long term note which is due in full in 260 days. The press recently ran a story regarding an individual who purchased and consumed your client's product. This individual stated that they broke two teeth and became violently ill as a result of consuming this product. You have seen the article and asked for a meeting with your client to discuss this matter and any impact it might have on the upcoming financial statements. Please detail all the issues, what accounting guidance is relevant and based upon this how should all of these issues be considered relative to the upcoming financial statements