Question
How do I journalize this problem? Wayne Shriver and Ian met today to discuss making custom dining room, living room, and bedroom sets. The contract
How do I journalize this problem?
Wayne Shriver and Ian met today to discuss making custom dining room, living room, and bedroom sets. The contract amount is for $28,500.00 (including sales tax), to be delivered by the end of the month (December 31). Contracts are kept by Ian. Wayne gave Ian Check No. 10178 in the amount of $14,250.00 (Form 6) for the 50% down payment, with the remainder to be paid in full upon delivery. This will be Job #132 for reference purposes. The down payment will be used to cover the purchase of the materials needed. The down payment, even though it's not the full amount of the sale, will be recognized as revenue with a journal entry. (If the final payment isn't received, the furniture won't be delivered and the furniture will then become merchandise inventory.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started