Consultants notified management of Goo Goo Baby Products that a crib toy poses a potential health hazard. Counsel indicated that a product recall is probable and is estimated to cost the company $5.5...

Consultants notified management of Goo Goo Baby Products that a crib toy poses a potential health hazard.
Counsel indicated that a product recall is probable and is estimated to cost the company $5.5 million. How will
this affect the company’s income statement and balance sheet this period?