Question
Sarah builds custom furniture and signs a contract with Joe's Bagels to build chairs for all of the Joe's Bagels stores. Sarah requires a deposit
Sarah builds custom furniture and signs a contract with Joe's Bagels to build chairs for all of the Joe's Bagels stores. Sarah requires a deposit of
$10,000
before she builds all of the chairs. The total price for all of the chairs is
$120,000
. The down payment is made on February 1 and the chairs are finished and delivered on July 28. Joe's Bagels pays the remaining
$110,000
on July 28 . How should Sarah record the sale of the chairs on July 28?\ \\\\table[[Cash,
$110,000
,],[Sales revenue,,],[,,],[Cash,
$110,000
,],[Sales revenue,
$120,000
,]]\ Cash
,$110,000
\ Unearned revenue
$10,000
\ Sales revenue
$120,000
\ Unearned revenue
$120,000
\ Sales revenue\
$120,000
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