Determine if the following transactions require an adjustment or not. If an adjusting entry is required, give the correct entry.

Petsitters, Inc. agreed to pet sit for Irma Peabody at a rate of $20 per day for a month. It is now the end of the first week, and financial statements are being prepared by Petsitters. Irma agreed that she would pay Petsitters for each day they worked even if they quit before the end of the month.

Petsitters, Inc. agreed to pet sit for Irma Peabody at a rate of $20 per day for a month. It is now the end of the first week, and financial statements are being prepared by Petsitters. Petsitters agreed that if it did not complete the entire month, it would not be paid.