Another question not directly answered by my book...
Settled a product liability lawsuite with a customer for $68,000 payable in January. Emerald Company accruded the loss in a litigation claims payable account.

How do I journalize this?

Credit that payable account and debit an expense account for litigation.

When the payment is actually made, the payable account will be debited and Cash will be credited.

When already paid

Litigation Expense 68,000
Litigation claims payable 68,000

Just close your liablility account and recognize the expense