Recording Revenue Under a Contract Modification Traders inc enters into a three yeat office maintenance contract with is customer for $210,000 ( $70,000 per year; to be paid st the end of each year) . The 570,000 per yeur nithe standalone selling price for a year of maintenance service, Ac the ond of the second year, both parties agree to modify the maintenance contract as follows: ill the fee for the third year it reduced to $55.000 to be paid at the end of Year 3, and (2) the contract is extended to year 4 and Year 5 for $100,000 ( 350.000 per year, to be paid at the end of tach yean) The ttandalone selling price for one year of service at the time of modification is 160.000. Maintenance fees ate billed aninualy by Traders inc. Required Answer the following questions, rounding each answer to the nearest whole dollar. a. Record Traders inciz joumal entry to recognize revenue for each of the first two years of the contract. Assume that the contract price was paid in cash. b. Record Tradeis inc's journal entry to recognize revenue for each of the years three through five of the contract, taking inte account the contract modification. entry is providedi) \begin{tabular}{|c|ccrrr|} \hline & \multicolumn{1}{c}{ Account Name } & & Dr. & Cr. \\ \hline Dec. 31, Year 3 & Deferred Revenue & & 51,667 & 0 \\ \hline & Service Revenue & & 0 & 51,667 \\ \hline & To record revenue. & & & \\ \hline \end{tabular} To record revenue. \begin{tabular}{|l|ccccc|} \hline & Account Name & & Dr. & Cr. \\ \hline Dec. 31, Year 5 & & & 0 & 0 & x \\ & & & 0 & 0 & \\ \hline & To record revenue & & & & \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|} \hline & Account Name & Dr. & Cr. \\ \hline Dec. 31, Year 5 & Deferred Service Revenue & 1,666 & \\ \hline & Service Revenue & & 1,666 \\ \hline \end{tabular}