Journal Entries and Adjustments NW Natural is a public utility in Oregon. An annual report included the following footnote: "Utility revenue from gas sale and transportation is recognized when the gas is delivered to and received by the customer. Estimated revenues are accrued for gas deliveries not billed to customers from meter read- ing dates to month end (unbilled revenue) and are reversed the following month when actual billings occur." The income statements showed (S in thousands): For year ended December 31 Gross operating revenues Operating income (loss) 2003 2002 $611,256 102,272 $641,376 116,258 The balance sheets showed as part of current assets (S in thousands): Accounts receivable Accrued unbilled revenues December 31 2003 2002 $52,213 $46,936 59,109 44,069 Prepare the adjusting journal entry for

(a) the unbilled revenues at the end of 2003 and

(b) the eventual billing and collection of the unbilled revenues in 2004. Ignore income taxes.