At the beginning of $2025,$ Whispering Construction Company changed from the cost$-$recovery method to recognizing revenue over

time $($percentage$-$of$-$completion$)$ for financial reporting purposes. The company will continue to use the cost$-$recovery method for tax

purposes. For years prior to $2025,$ pretax income under the two methods was as follows: percentage$-$of$-$completion $$101,000,$ and

cost$-$recovery $$62,620.$ The tax rate is $20\%.$

Prepare Whispering's $2025$ journal entry to record the change in accounting principle. $($Credit account titles are automatically indented

when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.

List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit