S. J. Boylan Engineering Group receives royalties on a technical manual written by two of its engineers and sold to William B. Irving Publishing, Inc. Royalties are 10% of net sales, receivable on October 1 for sales in January through June and on April 1 for sales in July through December of the prior year. Sales of the manual began in July 2023, and Boylan accrued royalty revenue of $31,000 at December 31, 2023, as follows:

Boylan received royalties of $36,000 on April 1, 2024, and $40,000 on October 1, 2024. Irving indicated to Boylan on December 31 that book sales subject to royalties for the second half of 2024 are expected to be $500,000.

Required:
1. Prepare any journal entries Boylan should record during 2024 related to the royalty revenue.
2. What is the amount of the adjustment, if any, that should be made to retained earnings in the 2023 financial statements?

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Receivable-royalty revenue. Royalty revenue..... 31,000 31,000