For the years ending June 30, 2001 and 2000, Microsoft Corporation reported unearned revenue of $4,816 million and $5,614 million, respectively. For the year ending June 30, 2001, Microsoft also reported total revenues of $19,747 million.
(a) What adjustment for unearned revenue did Microsoft make at June 30, 2001? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease.
(b) What percentage of total revenues was the adjustment for unearned revenue?