On January 1, 20X5, Potter Corporation started using a wholly owned subsidiary to deliver all its sales overnight to its customers. During 20X5, Potter recorded delivery service expense of $76,000 and made payments of $58,000 to the subsidiary. Required: Prepare the worksheet consolidation entries related to the intercompany services needed on December 31, 20X5, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a. Record the entry to reverse the delivery service expense.

b. Record the entry to eliminate the intercompany receivables/payables.