On May 10, 2019, Cosmo Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2019. Greig agrees to pay the full contract price of 2,000 on July 15, 2019. The cost of the goods is 1,300.

Cosmo delivers the product to Greig on June 15, 2019, and receives payment on July 15, 2019. Prepare the journal entries for Cosmo related to this contract and answer the following questions. Assume the company follows the perpetual system and also IFRS 15.

Select one:

a. On May 10 the entry should be Accounts Receivable.............................................................................. 2,000 Sales Revenue.............................................................................. 2,000 Cost of Goods Sold................................................................................ 1,300 Inventory............................................................................................... 1,300

b. On June 15 the entry should be Accounts Receivable.............................................................................. 2,000 Sales Revenue.............................................................................. 2,000 Cost of Goods Sold................................................................................ 1,300 Inventory............................................................................................... 1,300

c. I want to leave this answer blank

d. On July 15, the entry would include a Dr. to Account receivable for 2,000

e. The entry recorded by the company on the 15^th July will make an effect on total assets.