Question

Current Attempt in Progress On May 1, 2020, Indigo Inc. entered into a contract to deliver one of its specialty mowers to kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $965 in advance on May 15, 2020. Kickapoo pays Indigo on May 15, 2020, and Indigo delivers the mower (with cost of $651) on May 31, 2020. (a) Prepare the journal entry on May 1, 2020, for Indigo. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit May 1, 2020 (b) Prepare the journal entry on May 15, 2020, for Indigo. (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 May 15, 2020 (c) Prepare the journal entry on May 31, 2020, for Indigo. (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 Ofor the amounts.) Date Account Titles and Explanation Debit Credit May 31, 2020 (To record sales) (To record cost of goods sold)

Answer 1

Debit Credit No. Date Account Titles and Explanations a) 01-May No Entry b) $ 965 15-May Cash Account Unearned revenue (To record the advance received) $ 965 od c) $ 965 31-May Unearned revenue Sales revenue (To record sales) $ 965 31-May Cost of Goods sold Inventory (To record cost of goods sold) S 651