Manchester Co. operates as a manufacturer of industrial equipment. On March 28, 2020, Manchester Co. required an advance payment of \(\$ 100,000\) from a customer on a special order of equipment. On May 1, 2020, Manchester Co. prepared an invoice and delivered the industrial equipment to the customer. Total sales price is \(\$ 400,000\) and the remaining balance is due upon receipt of purchase.

Required

a. Record the entry on March 28, 2020, for Manchester Co.'s acceptance of the advance payment.

b. Indicate how the payment would be reported on Manchester's March 31, 2020, financial statements.

c. Record the entry on May 1,2020, for the sale of the equipment assuming that the advance payment was applied to the balance due. Ignore the cost of goods sold entry.