Question

Typhoon Sons & Co. manufactures various 2019, Typhoon deliver Problem 3: 3 points each, 2 points total) & Co. manufactures various types of golf clubs to third party vendors. On April 1, yphoon delivers a large quantity of golf clubs to Resona Country Club. Under the sales agreement, Resona is obligated to pay Typhoon $200,000 within six months. On May 1, Typhoon purchases for cash the right to advertise its products during Resona's annual golf tournament event for $3,000. Resona normally charges $2,500 for such services. On August 13, Resona pays Typhoon all amounts owed. Required: Prepare the journal entries Typhoon should record to account for the transaction on April 1, May and August 15. Indicate the amount of revenue that Typhoon should recognize on its sale of golf clubs to Resona. Place entries by the appropriate dates. If no entry write, "NO JE Dr Cr Accounts Date 4/1/19 5/1/19 8/15/19

Answer 1

Solution:

Date	Accounts	Debit	Credit
4/1/19	Account Receivables	$   200,000.00
	Sales Revenue		$      200,000.00
	(Being on account made to Resona Country club)
5/1/19	Advertisement Expense	$        3,000.00
	Cash		$           3,000.00
	(Being Advertisement expense paid)
8/15/19	Cash	$   200,000.00
	Account Receivables		$      200,000.00
	(Being Resona paid all amount owed)

The amount of revenue that typoon should recognize on its sale of golf clubs to Resona is $200,000.