Question
11. On March 1, 2020, Clark Kitchens sold customized industrial cabinets to Keller Restaurant for $35,000. The cost of the cabinets is $20,000. Keller has
11. On March 1, 2020, Clark Kitchens sold customized industrial cabinets to Keller Restaurant for $35,000. The cost of the cabinets is $20,000. Keller has agreed to pay for the cabinets but cant accept delivery until May 15th. Clark Kitchens billed Keller on March 6th and payment is due on April 15. By March 15th, Keller has completed the customization, prepared the cabinets for delivery and segregated them from the rest of their inventory.
Prepare any journal entries that Clark Kitchens should make for the month of March. Can Clark recognize revenue (yes or no) and why?
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