The Commonwealth of Virginia filed suit in October 2019 against Northern Timber Corporation, seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conservation. When the 2020 financial statements were issued in 2021, 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 Loss-litigation Liability-litigation Debit 1,000,000 Credit 1,000,000 Late in 2021, a settlement was reached with state-authorities to pay a total of $600,000 to cover the cost of violations. Required: 1. Prepare any jaurnal entries related to the change. 2. Would a disclosure note be required for the change in estimate? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any journal entries related to the change. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View Journal entry worksheet No Event General Journal Credit Debit 600,000 Liability litigation Gain litigation 60,000 Required 2 > The Commonwealth of Virginia filed suit in October 2019 against Northern Timber Corporation, seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conservation. When the 2020 financial statements were issued in 2021, 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: Credit Loss-litigation 1,000,000 Liability-litigation 1,000,000 General Journal Debit 20 Late in 2021, a settlement was reached with state-authorities to pay a total of $600,000 to cover the cost of violations. Required: 1. Prepare any journal entries related to the change. 2. Would a disclosure note be required for the change in estimate? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Would a disclosure note be required for the change in estimate? Disclosure note be required for the change in estimate Yes