Amanda Ltd received cash of $500,000 from a customer in November 2017 for the payment of computers to be manufactured and delivered to the customer in April 2018.

Required:

For the above transaction,

a) Identify if a liability, revenue or expense should be recognised in the year ended December 2017, and briefly explain why.

b) Prepare the journal entry to record the transaction. Ignore GST, and narration is not required.