Labernard Company receives royalties on a patent it developed several years ago. Royalties are a percentage of net sales, receivable on September 30 for sales from January through June and receivable on March 31 for sales from July through December. The patent rights were distributed on July 1, 2013, and Labernard accrued royalty revenue on December 31,2013, as follows:Royalty Revenue Receivable93,500 Royalty Revenue93,500 Labernard Company received royalties of: 3/31/2014102,000$ 9/30/2014400,000$ Royalties as % of net sales20%Estimated sales subject to royalties in second half of 20141,200,000$ Instructions:1. Prepare any journal entries Labernard should record during 2014 related to the royalty revenue.2. Indicate any changes that should be made to retained earnings relative to these royalties.