Gupta Industries received a $290,000 prepayment from X Associates for the sale of new equipment....
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Accounting
Gupta Industries received a $290,000 prepayment from X Associates for the sale of new equipment. Gupta will bill X Associates an additional $111,000 upon delivery of the equipment. Upon receipt of the $290,000 prepayment.
a) How much should Holt recognize for a contract asset?
b) How much should Holt recognize for a contract liability?
c) How much should Holt recognize for account receivables?
PLEASE share your calculations, Thanks
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