Contingent liabilities must be recorded if:

A) The future event is probable and the amount owed can be reasonably estimated.
B) The future event is remote.
C) The future event is reasonably possible but not estimable.
D) The amount owed cannot be reasonably estimated.
E) The future event is probable but not estimable.

Contingent liabilities must be recorded if the future event is probable and the amount owed can be reasonably estimated. If the event is remote or reasonably possible but not estimable, the liability may need to be disclosed in the notes to the financial statements but it is not recorded on the balance sheet. If the future event is probable but not estimable, it can still be recorded as a liability but with a note disclosing that the amount is not estimable.