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Problem -7A (Algorithmic) Uneamed Revenue and Customer Depoata On November 20, 2019, Crimson Cave Technologies agreed to manufacture and supply 500 electronic control units used

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Problem -7A (Algorithmic) Uneamed Revenue and Customer Depoata On November 20, 2019, Crimson Cave Technologies agreed to manufacture and supply 500 electronic control units used by Edison Meeting & Cooling in large commercial and Industria restallments. On that date Edition deposited 5400 per unit upon signing the year purchase agreement, which set the selling price of each control unit at $1,550. Crimson Cove will record the units at $300 per unit in inventory. No units were delivered during 2019. In 2020, 100 units were delivered, 150 units were delivered during 2021, and the remaining units were delivered during 2022. Assume Crimson Cove uses a perpetual inventory system. Edison pays in cash upon delivery for units not covered by the deposit Required: 1. Conceptul Connection: Prepare the entry by Crimson Cove to record receipt or the deposit during 2019 Nov. 20 Record receipt of deposit for merchandise not yet delivered) How would the deposit be reported in the financial statements at the end of 2019 The portion of customer deponit pertaining to next year deliveries should be closed cinsied on the balance sheet at the end of 2010, the remainder should be 2. Conceptul Connection prepare the entry by Crimeon Cove to record the recognition of revenue and (b) the delivery of 100 units during 2020. For a compound transactionIran, un bon does not require an entry leave it blank (0) (Record recognition of revenue) b) (Record delivery of merchandise) How would the deposit be reported in the financial statements at the end of 20207 The amount that pertains to next year's deliveries and would be reported as on the balance sheet at the end of 2020, while the remainder would be changes 3. Prepare the entry by Crimson Cove to record (a) the recognition of revenue and (b) the delivery of 150 units during 2021. For a compound transactions amount box doo require an entry, leave it blank HII Ill Record recognition of revenue (b) (Record delivery of merchandise)

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