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Recording Contract Assets and Liabilities Haskins, Inc., has reached an agreement with a customer, Skaife Corporation, to deliver 3 0 0 units of a customized
Recording Contract Assets and Liabilities
Haskins, Inc., has reached an agreement with a customer, Skaife Corporation, to deliver units of a customized product. The standard billing price per unit is $ and there are no discounts, so Skaife Corporation will pay $ in total. At the time of the agreement on April Skaife Corporation provides a $ cash deposit to Haskins, Inc. Haskins agrees to deliver units to Skaife Corporation on May and at that time, Haskins can send an invoice for $ to be paid by Skaife Corporation on June The remaining units are to be delivered on July accompanied by an invoice for the remaining amount of the total $ purchase price to be paid on July
Assume that Haskins, Inc., has no uncertainties about its own ability to meet the terms of the contract or about Skaife Corporations ability and willingness to pay.
Provide the journal entries to record the events leaving out the accounting for Haskin, Inc.s costsProvide the journal entries to record the events leaving out the accounting for Haskin, Inc.s costs
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