Reference no: EM133103477

Question - In a company's form 10-Q, this note was included: Contributors-Contributions Made - On March 10, 2021, the Company announced that it was ending its non-employee volunteer program, which began in 2013 to build and improve language courses. As part of this change, those contributors who participated in the program became eligible to receive a one-time award, up to an aggregate amount of approximately $5,098, including fees paid to process payments of approximately $526. The Company accounted for this under Financial Accounting Standards Board ("FASB") Accounting Standards Codifications ("ASC") 958-720, Not-For-Profit Entities - Other Expenses and ASC 720-25, , based on the nature of this contribution, which is an unconditional promise. The Company recorded the initial charge during the three months ended March 31, 2021, which is when the Company made the unconditional promise to pay. During the three months ended June 30, 2021 the amount previously reserved was reduced by $878 to reflect those awards that were not claimed, resulting in a reduction of the expense, bringing the total amount to $4,220. This amount is included within Sales and marketing in the unaudited condensed consolidated statement of operations and comprehensive loss. What are the journal entries for the transactions stated?