Recording and Reporting Customer Advances

Manchester Co$.$ prepared an invoice and delivered the equipment to the customer. Total sales price is $$800,000$ and the remaining balance is due upon delivery of the equipment.

Required

a$.$ Record the entry on March $28$ for Manchester Co$.\text{'}$s receipt of the advance payment.

b$.$ Indicate how the payment would be reported on Manchester's March $31$ financial statements. Ignore the cash account.

c$.$ Record the entry on May $1$ for the sale of the equipment assuming that the advance payment was applied to the balance due. Ignore the cost of goods sold entry.