Chesterman Co. operates as a manufacturer of industrial equipment. On March 28, 2019, Chesterman Co. required an advance payment of $200,000 from a customer on a special order of equipment. On May 1, 2019, Chesterman Co. prepared an invoice and delivered the industrial equipment to the customer. Total sales price is $750,000 and the remaining balance is due upon receipt of purchase.

a. Record the entry on March 28, 2019, for Chesterman Co.s acceptance of the advance payment.

b. Indicate how the payment would be reported on Chestermans March 31, 2019, financial statements.

c. Record the entry on May 1, 2019, for the sale of the equipment assuming that the advance payment was applied to the balance due. Ignore the cost of goods sold entry.