Question
A customer paid $180,000 for a special order on 9/22/2020. The cash receipt was appropriately recorded (debit to cash and credit to unearned revenue), but
A customer paid $180,000 for a special order on 9/22/2020. The cash receipt was appropriately recorded (debit to cash and credit to unearned revenue), but no entry was made on 12/31/2021 when the order was shipped. The inventory cost $140,400 to produce.
Would there be a correcting journal entry and how would this effect the financial statement?
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Yes there would need to be a correcting journal entry to recognize the reve...
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
