The Commonwealth of Virginia filed suit in October $2022$ against Northern Timber Corporation, seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conservation. When the $2023$ financial statements were issued in $2024,$ Northern had not reached a settlement with state authorities, but legal counsel advised Northern Timber that it was probable the ultimate settlement would be $$1,000,000$ in penalties. The following entry was recorded:

General Journal Debit Credit

Loss$$litigation $1,000,000$

Liability$$litigation $1,000,000$

Late in $2024,$ a settlement was reached with state authorities to pay a total of $$600,000$ to cover the cost of violations.

Required:

Prepare any journal entries related to the change.

Would a disclosure note be required for the change in estimate?