The Commonwealth of Virginia filed suit in October 2022 against Northern Timber Corporation, seeking civil penalties and injunctive rellef 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 Northem Timber that it was probable the ultimate settlement would be $1,169,000 in penalties. The following entry was recorded: Late in 2024 , a settiement was reached with state authorities to pay a total of $744,000 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? Prepare any journal entries related to the change. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record revision to the liability on the basis of the new estimate. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Would a disclosure note be required for the change in estimate? Disclosure note required for the change in estimate