customer who purchased helium balloons from P3 has sued for $1,000,000 because some of the balloons burst and the customers dogs were frightened and will now no longer go near anything that even resembles a balloon, such as balls or round lawn ornaments. The customer has had their two dogs in therapy but to no avail as the dogs are still frightened of round objects. The P3 legal team believes that it is likely that P3 will lose somewhere between $50,000 and $250,000. The customer has offered to settle for $750,000. 2. P3 has entered a lawsuit against one its former suppliers who failed to deliver goods as ordered and failed to either reimburse P3 for the goods or to replace the goods. The faulty products resulted in lost sales to P3 of $950,000 as well as damage to P3 ‘s reputation thus P3 is seeking damages in the amount of $2,000,000. P3 ‘s legal team believes P3 and the customer will reach an out of court settlement and estimates the range of the settlement to be between $750,000 and $1,200,000 but believes that $1,000,000 would be the most likely settlement. Prepare journal entries
