One of Smith Corporation$$s customers, James Corporation, signed a contract on June $1,2019$ with Smith whereas Smith would build and deliver a machine for James. In return, James agreed to pay $$200,000$ for the machine. As part of the contract arrangement, James paid Smith a down payment on the machine of $$50,000$ on June $1,2019.$ The machine was completed and delivered to James by Smith on June $24,2019.$ How should Smith treat the signing of the contract and the receipt of the down payment in the quarter ending June $30,2019$ Financial Statements?

Group of answer choices

Smith would recognize $$200,000$ worth of revenue when it completed and delivered the machine to James on October $4,2019.$

None of the answer selections are correct.

Smith would recognize the $$50,000$ down payment received on June $1,2019$ as unearned revenue $($a liability on the balance sheet$).$

Smith would recognize the $$50,000$ down payment as revenue and record the receipt of $$50,000$ cash as a debit to cash on June $1,2019$

Smith would not make any journal entry on June $1,2019.$

Smith would recognize revenue in the amount of $$200,000$ on June $1,2019.$