Max Industries, a publicly traded company, changed its method of accounting for bad debts from the direct write-off method to the allowance method on January 1, 2011 because uncollectible accounts always have been material to the financial statements of the company. The company's accountant determined that an appropriate allowance of $9,000,000 should be established. Ignore income taxes.

Required:

i) Is this a change in accounting principle, change in estimate, or a correction of an error?

ii) Prepare the journal entry to record the change.