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Roberts Dry Cleaning has been in the business of cleaning clothes for customers for over...

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Accounting

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Roberts Dry Cleaning has been in the business of cleaning clothes for customers for over forty years. The city in which he operates experienced a severe 12 inch snow storm. Mr. Roberts tried to clean the snow off of his main sidewalk into his business. During the day, some of the snow had melted but froze overnight making the sidewalk extremely dangerous. The next morning when he opened for business at 8:00 am a customer fell on the ice and broke his left arm and his hip The customer sued the company for $250,000 in damages. As of December 31, 2020, the lawsuit had not been settled Mr. Robert's attorney informed him that it was probable that he would lose the suit. However, his attorney felt that they could settle the suit with the customer for $150,000 Instructions: 1 How should Mr. Roberts present this contingent liability in his financial statements

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