On September 1, 2019, Hogwarts Lumber Company sold 200,000 board feet of lumber to Potter Builders. The selling price was $7.75 per board foot. Potter paid 35% of the total purchase price when the purchase order was accepted by Hogwarts, and agreed to pay 25% of the total purchase price on October 1, 2019, and December 1, 2019, with the final 15% due when the final shipment was made in 2020. Lumber shipments to Potter and payments received from Potter are provided below. a. How much revenue should Hogwarts recognize in 2019 under the accrual method of accounting? Show your work. b. What should Hogwarts report as unearned (deferred) revenue as of December 31, 2019? Show your work. Board feet sold 200,000 S Price per board foot Total selling price 7.75 1,550,000 Shipments to Potter Board Feet Date 9/15/19 10/25/19 12/22/19 3/11/20 45,000 40,000 50,000 65,000 200,000 Payments received from Potter Date 9/1/19 10/1/19 12/1/19 3/11/20 Amount 542,500 387,500 387,500 232,500 1,550,000