Sheffield Construction Company changed from the cost$-$recovery to the percentage$-$of$-$completion method of accounting for long$-$

term construction contracts during $2026.$ For tax purposes, the company employs the cost$-$recovery method and will continue this

approach in the future $($Hint: Adjust all tax consequences through the Deferred Tax Liablity account.$)$ The appropriate information

related to this change is as follows.

$($b$)$

What entry is necessary to adjust the accounting records for the change in accounting principle? $($Credit occount 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