Refer to PE 4–6. On December 31, Greg received a statement from the newspaper publisher notifying him that he had earned $13,700 for his December deliveries. Because December 31 is the end of Greg’s fiscal year, he makes adjusting entries at that time. Make the following adjusting journal entries necessary on Greg’s books:
1. On December 31 to record the $13,700 in delivery revenue earned during December.
2. On January 10 to record the receipt of the $13,700 in cash. Note: When making this entry, don’t forget the adjusting entry that was made on December 31.