. During the year, a visitor to the facility slipped and fell on some spilled...
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Accounting
. During the year, a visitor to the facility slipped and fell on some spilled iced tea and broke their leg. They have subsequently sued GBB for $800,000. GBB's lawyers do not believe that the $800,000 lawsuit will be successful, but do believe that there is a 20% chance it will be dismissed, a 60% chance that GBB will have to pay $200,000, and a 20% chance it will have to pay $400,000. GBB intends put on a contest this year with a coupon attached to each tea product. Any customer who collects five coupons may send them to GBB and redeem them for a GBB T-shirt. GBB would like some guidance on how to account for this
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