On July 10, Boogie Footware agrees to a contract to sell 800 pair of flapper shoes for $16,000 ($20.00 each).

On September 1, after 500 pair of have been delivered, Boogie modifies the agreement to reduce the price of the remaining 300 pair of flapper shoes to $10 a pair.

During September, Boogie delivers 200 pairs of shoes.

a.How much revenue should Boogie recognize for the 500 pair that were delivered prior to September 1? $___________________

b.On September 1, when the contract is modified, prepare the necessary adjusting entry:

Debit

Credit

c.How much revenue will Boogie recognize for the 200 pair delivered in the month of September?$_____________________________