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Problem 8-78A (Algorithmic) Unearned Revenue and Customer Deposits On November 20, 2013, Crimson Cove Technologies agreed to manufacture and supply 500 electronic control units used
Problem 8-78A (Algorithmic) Unearned Revenue and Customer Deposits On November 20, 2013, Crimson Cove Technologies agreed to manufacture and supply 500 electronic control units used by Edison Heating & Cooling in large commercial and industrial installments. Edison deposited $480 per unit upon signing the 3-year purchase agreement, which set the selling price of each control unit at $1,580. Crimson Cove will record these units at $300 per unit in inventory. No units were delivered during 2013. In 2014, 100 units were delivered, 150 units were delivered during 2015, and the remaining units were delivered during 2016. Assume Crimson Cove uses a perpetual inventory system Required: Hide 1. Conceptual Connection: Prepare the entry by Crimson Cove to record receipt of the deposit during 2013. Nov. 20 Cash Unearned Sales Revenue
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