Question

On May 10, 2020, Swifty Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,120 on July 15, 2020. The cost of the goods is $1,490. Swifty delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Swifty related to this contract. Either party may terminate the contract without compensation until one of the parties performs.

Answer 1

Journal Entries
Sr. No.	Date	Account Title and explanation	Debit	Credit
1	June 15. 2020	Account Receivable - Greig Inc.	$2,120
		Sales Revenue		$2,120
		(To Record the sale of Goods )
2	June 15. 2020	Cost of Goods Sold	$1,490
		Inventory		$1,490
		(To record the cost of Goods Sold)
3	July 15. 2020	Cash	$2,120
		Account Receivable - Greig Inc.		$2,120
		(To Record the receipt from Greig Inc.)