E318 On January 1, a business had a liability to customers of $7,500 for unearned service revenue collected in advance. On May 31, the business received advance cash receipts of $20,000. At year end, December 31, the companys liability to customers was $3,500 for unearned service revenue collected in advance. Required 1. Assume that the company records unearned revenues by initially crediting a liability account. a. Open T-accounts for Unearned Service Revenue and Service Revenue and place the beginning balance in Unearned Service Revenue. b. Journalize the May 31 and December 31 entries and post their dollar amounts into the T-accounts. No explanations are needed. 2. Assume that the company records unearned revenues by initially crediting a revenue account. a. Open T-accounts for Unearned Service Revenue and Service Revenue and place the beginning balance on January 1 in the Unearned Service Revenue account. b. Journalize the May 31 cash collection (as a revenue). No explanation is needed. Post to the T-account. c. Journalize and post the December 31 adjusting entry to update the balance in the Unearned Service Revenue account to $3,500. No explanation is needed. 3. Compare the ending balances in the two accounts. Explain why they are the same or different