On May 1, 2017, Buffalo Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $826 in advance on May 15, 2017. Kickapoo pays Buffalo on May 15, 2017, and Buffalo delivers the mower (with cost of $511) on May 31, 2017.(a) Prepare the journal entry on May 1, 2017, for Buffalo. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditMay 1, 2017       (b) Prepare the journal entry on May 15, 2017, for Buffalo. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditMay 15, 2017       (c) Prepare the journal entry on May 31, 2017, for Buffalo. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditMay 31, 2017        (To record sales)           (To record cost of goods sold)

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Asked Jul 23, 2019
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On May 1, 2017, Buffalo Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $826 in advance on May 15, 2017. Kickapoo pays Buffalo on May 15, 2017, and Buffalo delivers the mower (with cost of $511) on May 31, 2017.

(a) Prepare the journal entry on May 1, 2017, for Buffalo. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date
Account Titles and Explanation
Debit
Credit
May 1, 2017
 
 
 
 
 
 
 


(b) Prepare the journal entry on May 15, 2017, for Buffalo. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date
Account Titles and Explanation
Debit
Credit
May 15, 2017
 
 
 
 
 
 
 


(c) Prepare the journal entry on May 31, 2017, for Buffalo. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date
Account Titles and Explanation
Debit
Credit
May 31, 2017
 
 
 
 
 
 
 
 
(To record sales)
   
 
 
 
 
 
 
 
 
 
(To record cost of goods sold)
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Step 1

Revenue recognition: The revenue recognition requires every business organization to recognize the revenue when it is earned, no matter, cash related to that obligation is received or not.

Step 2

Prepare the journal entry on May 1, 2017, for Company B.

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May 1, 2017, for Company B Prepare the journal entry on Credit (S) Debit (S) Date Account Title May 1, 2017 No entry $0 No entry (No entry is required cash transaction) as there is no

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Step 3

Prepare the journal entry on May 15, 201...

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May 15, 2017, for Company B: Prepare the journal entry on Debit (S) Credit (S) Date Account Title $826 May 15, 2017 Cash $826 Uneamed Revenue (To record the amount received from Company K)

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