Use the following information to answer the next 6 questions: You have recently been hired by XYZ Company as an accountant. You discover that the company neglected to make several adjusting entries as of the end of the fiscal year, December 31, 2017. Assuming that XYZ maintains its books on the accrual basis, and that all external transactions were correctly reported, suggest the appropriate adjusting entries for the following events.

XYZ has accepted a contract with a customer to deliver merchandise costing $10,000, every month for the first three months of 2018. The total sales revenue will be $25,000 for each month. XYZs accountant made no entry to record this sales contract. The appropriate adjusting entry as of December 31, 2017 is:

Cost of Goods Sold		30,000
Net Income		45,000
Sales Revenue			75,000

Accounts Receivable		75,000
Cost of Goods Sold		30,000
Sales Revenue			75,000
Inventory			30,000

Accounts Receivable		75,000
Unearned Revenue			75,000

Unearned Revenue		75,000
Sales Commitments			75,000

No Entry Required or None of the Above