prepare a journal entry for the following narrative:

On January 31, 2013 Sun-Glass Hut paid KAT Watches Inc $3,170,062.50 for 21,750 custom watches. As part of the order KAT Watches has promised to in-print Sun-Glass Hut's insignia on each watch band. KAT Watches Inc plans to have the first batch of 10,000 watches ready for shipment to Sun-Glass Hut on October 31, 2013. The remaining batch of watches will not be ready for shipment until January of the following year. Prepare the July 31st Journal Entry.