Question

Brief Exercise 18-2 On May 10, 2017, Crane C enters into a contract to deliver a product to Greig Inc. on June 15, 2017. Greg agrees to pay the full contract price of $2,080 on July 15, 2017. The cost of the goods is $1,330. Crane delivers the product to Gregon June 15, 2017, and receives payment on July 15, 2017. Prepare the journal entries for Crane related to this contract. Either party may terminate the contract without compensation until one of the parties performs (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit (To record contract entered into) (To record sales) (To record cost of goods sold) (To record payment received) Click if you would like to show Work for this questions on Show Work

Answer 1

Date	Account Titles and Explanation	Debit	Credit
May 10 2017	No entry is required (None of them performed)
June 15 2017	Accounts receivable a/c Dr	$2,080
	Sales revenue a/c Cr		$2,080
	(To record sales )
June 15 2017	Cost of goods sold a/c Dr	1330
	Inventory a/c Cr		1330
	(To record cost of goods sold)
July 15, 2017	Cash a/c Dr	2080
	Accounts receivable a/c Cr		2080
	(To record payment received)