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McLaughlin Corporation uses the allowance method to account for bad debts. At the end of the company's fiscal year, accounts receivable are analyzed and the allowance for uncollectible accounts is adjusted. At the end of 2024 , the company reported the following amounts: In 2025, it was determined that $1,825,000 of year-end 2024 receivables had to be written off as uncollectible. This was due in part to the fact that Hughes Corporation, a long-standing customer that had always paid its bilits, unexpectedly declared bankruptcy in 2025. Hughes owed McLaughlin $1,400,000. At the end of 2024 , none of the Hughes recelvable was considered uncollectible. Required: Select the true statements below regarding the accounting treatment of McLaughlin's underestimation of bad debts, and any disclosures required in the financial statements issued for the 2024 fiscal year. Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. McLaughlin's underestimation of bad debts is treated as a change in occounting estimote. Changes in estimates are accounted for prospectively

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