An Islamic bank entered an Istisna’a contract with a client to produce 500 chairs for USD 30,000 in one year. The bank also signed a Parallel Istisna’a contract with a furniture manufacturer to produce 500 chairs for USD 20,000 in one year.

What would be the journal entry to record the payment to the manufacturer?

a. Debit Istisna’a receivable, Credit Istisna’a billing

b. Debit Istisna’a billing, Credit Istisna’a receivable

c. Debit Istisna’a cost, Credit accounts payable

d. Debit Istisna’a accounts payable, Credit cash