Question

On May 1, 2020, Nash 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 $833 in advance on May 15, 2020. Kickapoo pays Nash on May 15, 2020, and Nash delivers the mower (with cost of $527) on May 31, 2020. (a) Prepare the journal entry on May 1, 2020, for Nash. (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 Nash. (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 15, 2020 (c) Prepare the journal entry on May 31, 2020, for Nash. (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 31, 2020 (To record sales) (To record cost of goods sold)

Answer 1

Debit Credit No. Date a) May 1, 2020 Account Titles and Explanations No Entry 833 b) May 15, 2020 Cash Unearned revenue (To record the advance received) $ 833 $ 833 c) May 31, 2020 Unearned revenue Sales revenue (To record sales) $ 833 $ 527 Cost of Goods sold Inventory (To record cost of goods sold) $ 527