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ASC 450-20: Explanation of Legal Claim Contingent Liability. loss increases to $600,000, the company would record the following journal entry: Journal Entry 3: Record the settlement of the legal claim. When the lawsuit. Best Methods for Solution Design journal entry for lawsuit settlement loss and related matters. Journal Entries Contingent Liabilities Meaning, Examples, and Accounting Entries Journal Entries. The fourth entry records the final settlement of the liability; a loss will be incurred if the actual expense exceeds the amount of the initial liability , Contingent Liabilities Meaning, Examples, and Accounting Entries, Contingent Liabilities Meaning, Examples, and Accounting Entries....

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