Josie Inc. collects cash from customers two ways:
1. Accrued Revenue. Some customers pay Josie after Josie has performed service for the customer. During 2017, Josie made sales of $50,000 on account and later received cash of $40,000 on account from these customers.
2. Unearned Revenue. A few customers pay Josie in advance, and Josie later performs service for the customer. During 2017, Josie collected $7,000 cash in advance and later earned $6,000 of this amount.
Journalize the following for Josie:
a. Earning service revenue of $50,000 on account and then collecting $40,000 on account
b. Receiving $7,000 in advance and then earning $6,000 as service revenue?