Caratini Company sells custom-made windows to Bryant Inc. for a new office building. The sale price for the windows is $275,000. Caratini requires customers to provide a down payment of 15% before it designs and manufactures the windows to customer specifications. Bryant makes the down payment on December 10, 2025, and the windows are completed and delivered on April 3, 2026.

Instructions

a. Prepare the entry for Caratini when it receives the down payment.

b. Prepare the entry (or entries) for Caratini on April 3, 2026. The cost of the windows is $200,000.