Recording and Reporting Customer Advances Manchester Co. prepared an invoice and delivered the equipment...
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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 $ and the remaining balance is due upon delivery of the equipment.
Required
a Record the entry on March for Manchester Cos receipt of the advance payment.
b Indicate how the payment would be reported on Manchester's March financial statements. Ignore the cash account.
c Record the entry on May 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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