5 Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales. Royalties are payable annually on February 1 for sales the previous year. The editor indicated to Feenix on December 31, 2021, that book sales subject to royalties for the year just ended are expected to be $210,000. Accordingly, Feenix accrued royalty revenue of $25,200 at December 31 and received royalties of $25,610 on February 1, 2022. What adjustments, if any, should be made to retained earnings or to the 2021 financial statements?

Record adjustments to be made to retained earnings for 2021 financial statements.