The Commonwealth of Virginia filed suit in October 2019, against Northern Timber Corporation sceking civil penalties and injunctive relief for violations of environmental laws regulating forest conservation. When the financial statements were issued in 2020, Northern had not reached a settlement with state authoritios, 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: Late in 2021, a settiement was reached with state authorities to pay a total of $600,000 to cover the cost of violations Required: 1. Prepare any journal entry(s) related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)