Nash Industries changed its method of accounting for warranties from the cash basis to the accrual basis on January $1,2024.$ The company's accountant determined that a liability of $$70,000$ should be established. Ignore income taxes.

Required:

Prepare the journal entry to record the accounting change.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.