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The State of Alabama Filed Suit Against Edwards Chemical Company

Question 68

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The State of Alabama filed suit against Edwards Chemical Company for violations of water pollution laws in 2015.During 2015,the company accrued a $250,000 loss for litigation.At the end of 2016,Edwards was able to settle with the State for $205,000.What entry should Edwards make when it pays the State in December,2016?


A) The State of Alabama filed suit against Edwards Chemical Company for violations of water pollution laws in 2015.During 2015,the company accrued a $250,000 loss for litigation.At the end of 2016,Edwards was able to settle with the State for $205,000.What entry should Edwards make when it pays the State in December,2016? A) Cash 205,000 B) Cash 205,000 C) Cash 205,000 D) Cash 205,000 Cash 205,000
B) The State of Alabama filed suit against Edwards Chemical Company for violations of water pollution laws in 2015.During 2015,the company accrued a $250,000 loss for litigation.At the end of 2016,Edwards was able to settle with the State for $205,000.What entry should Edwards make when it pays the State in December,2016? A) Cash 205,000 B) Cash 205,000 C) Cash 205,000 D) Cash 205,000 Cash 205,000
C) The State of Alabama filed suit against Edwards Chemical Company for violations of water pollution laws in 2015.During 2015,the company accrued a $250,000 loss for litigation.At the end of 2016,Edwards was able to settle with the State for $205,000.What entry should Edwards make when it pays the State in December,2016? A) Cash 205,000 B) Cash 205,000 C) Cash 205,000 D) Cash 205,000 Cash 205,000
D) The State of Alabama filed suit against Edwards Chemical Company for violations of water pollution laws in 2015.During 2015,the company accrued a $250,000 loss for litigation.At the end of 2016,Edwards was able to settle with the State for $205,000.What entry should Edwards make when it pays the State in December,2016? A) Cash 205,000 B) Cash 205,000 C) Cash 205,000 D) Cash 205,000 Cash 205,000

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