On October 15, Topper modifies the agreement to sell an additional 500 tie-dyed shitsfor $4,000 ($8.00 each * 500 shirts) which is significantly lower than Toppers stand-alone selling price at that time.

So they still need to deliver 100from the agreement made on October 1 plus another 500for a total of 600tie-dyed flags.

On October 31, Topper delivers100shirts and receives $1,000 cash.

1. Prepare the journal entry Topper Company would record to recognize revenue on October 31:

	Debit	Credit