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6. Quayle Company has been sued by a customer who claims injury from use of...

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Accounting

6. Quayle Company has been sued by a customer who claims injury from use of Quayle's product. The company's lawyers and a consultant believe that the likelihood of a judgment against Quayle is remote. What should Quayle do to account for this potential liability?

A-)recognize the liability and report it on the balance sheet

B-)provide disclosure in the footnotes to the financial statements

C-)report an allowance account on the balance sheet

D-)do nothing

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