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On November 1, 2017.XYZ Construction entered into a contract to buy an $80,000 Mixer from Volvo Company. The contract required XYZ to pay $75,000 in
On November 1, 2017.XYZ Construction entered into a contract to buy an $80,000 Mixer from Volvo Company. The contract required XYZ to pay $75,000 in advance on December 1, 2017 with the remaining balance to be paid on delivery. The Mixer (cost of $55,000) was delivered on December 31, 2017. The journal entry for Volvo Company to record the delivery of the Mixer includes a: a. credit to Sales Revenue for $75,000 b. debit to Inventory for $55,000. Occredit to Cost of Goods Sold for $55,000. od credit to Unearned Sales Revenue for $75,000 oe. A debit to cash $5,000 XYZ Computers manufactures and sells CCTV Camera systems, which include a 90-day warranty on product defects. It also sells an extended warranty which provides an additional one year of protection. On June 5, the company sold a CCTV camera system for $4,000 and an extended warranty for another $1.500. The journal entry to record this transaction by XYZ would include a a debit to Prepaid Service Revenue of $1,500 b. a credit to Unearned Service Revenue of $1.200. c. a credit to Sales Revenue of $5,500. d. Acredit to sales revenue of $4.000 e. a credit to Service Revenue of $5,500
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