Tesla has accepted reservations for its Cybertruck, an all$-$electric SUV, in $2019,$ with a refundable deposit of $$100.$ The stainless steel$-$bodied vehicle has a starting price of $$60,000$ and a battery range of $250$ miles on a single charge. Customers can upgrade to a dual motor, which allows $340$ miles on a single charge. The company reported that it currently has $2$ million pre$-$orders for the Cybertruck.

In November of $2023,$ the company began delivery of the cybertruck. Kim Kardashian made the news Links to an external site. recently when she parked her cyber stuck next to her private jet.

If a customer wants to purchase a Cybertruck, the customer will first make a reservation, which puts the customer in line. A reservation now requires a $$250$ reservation payment. When the production of that customer's Tesla would be scheduled within the next $34$ months, Tesla invites the customer to place an actual order. The $$250$ reservation payment is applied to the customer's purchase agreement. If the customer changes their mind at any point before making the purchase agreement, the $$250$ reservation payment is refundable to the customer. Full payment for the Cybertruck $($less the $$250$ reservation payment$)$ is collected at the time of delivery to the customer. $($See Tesla Pre$-$order Form Download Tesla Pre$-$order Form$)$

Questions

Assume that in January of $2024,$ Tesla receives pre$-$orders of $$250$ from customers. How will the $$250$ payment from the customers affect Tesla's accounting equation?

Journalize the January $2024$ transaction.

Now, assume that a customer orders a Cybertruck by completing the purchase agreement. Will this purchase agreement directly impact Tesla's balance sheet or income statement at the purchase agreement date? Why or why not?

Assuming that in March of $2024,$ Tesla delivered a Cybertruck with a sale price of $$100,000$ to a customer who previously paid the $$250$ pre$-$order deposit. The customer paid Tesla the remaining balance of $$99,750$ in cash on the same date the vehicle was delivered. How will Tesla's balance sheet and income statement be impacted at the point of delivery?