In 2020, Bect, Co. evaluated its bad debt estimate and decided to change how they estimate bad debt. The previous estimation of bad debt, using 4% of credit sale, was too low. Bect, Co. will now estimate bad debt expense as 5% of credit sales. In 2020 they had credits sales of $225,000.

This accounting change will be reported using the Prospective method. Answer the question below:

1. Record the journal entry needed to make this change in 2020.