The balance in the unearned fees account, before adjustment at the end of the year, is $38,375.

Question:

The balance in the unearned fees account, before adjustment at the end of the year, is $38,375.
a. Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $17,200.
b. Why was this unearned fees account set up? What transaction occurred to require this account?