What would be the journal entry or adjustments are needed for the following transactions and information?

1. In December 1, a customer paid $3,500 cash in advance for merchandise that was temporarily out of stock. The advance payments received from customers are initially recorded as liabilities. The $3,500 is not included in the sales figures in above.

2. As of December 31, 2022, the merchandise paid for in advance (transaction above) was still out of stock. The company expects to receive the merchandise and fill the order by January 15, 2023.