On May 1, 2019, Mount Company enters into a contract to transfer a product to Eric Company

Question:

On May 1, 2019, Mount Company enters into a contract to transfer a product to Eric Company on September 30, 2019. It is agreed that Eric will pay the full price of $25,000 in advance on June 15, 2019. Eric pays on June 15, 2019, and Mount delivers the product on September 30, 2019. Prepare the journal entries required for Mount in 2019.