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Recording and Reporting Customer Advances Manchester Co. prepared an invoice and...

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Accounting

Recording and Reporting Customer Advances
Manchester Co. prepared an invoice and delivered the equipment to the customer. Total sales price is $800,000 and the remaining balance is due upon delivery of the equipment.
Required
a. Record the entry on March 28 for Manchester Co.'s receipt of the advance payment.
b. Indicate how the payment would be reported on Manchester's March 31 financial statements. Ignore the cash account.
c. Record the entry on May 1 for the sale of the equipment assuming that the advance payment was applied to the balance due. Ignore the cost of goods sold entry.
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