A lawsuit is filed against a company in December of the current year. An outside legal counsel advises that a loss of $45,000 is likely. What would the adjusting entry look like?

There would be an increase in liabilities so a credit to the "Estimated Legal Liability Account", but what account would you debit for $45,000?

Some type of loss - you don't need to get picky about the name. Like Litigation Loss or some such.