3

1.Record the sales revenue 2.Record the purchase of advertisements 3.Record the receipt of cash.

Typhoon Sons \& Company manufactures various types of golf clubs to third party vendors. On April 1, 2024, Typhoon delivers a large quantity of golf clubs to Resona Country Club. Under the sales agreement, Resona is obligated to pay Typhoon $200,000 within six months. On May 1. Typhoon purchases for cash the right to advertise its products during Resona's annual golf tournament event for $3,000. Resona normally charges $2,500 for such services. On August 15 , Resona pays Typhoon all amounts owed. Required: Prepare the journal entries Typhoon should record to account for the transaction on April 1, May 1 and August 15. Indicate the amount of revenue that Typhoon should recognize on its sale of golf clubs to Resona