On May 1, 2017, Pharoah Company enters into a contract to transfer a product to Eric Company on September 30, 2017. It is agreed that Eric will pay the full price of $24,130 in advance on June 15, 2017. Eric pays on June 15, 2017, and Pharoah delivers the product on September 30, 2017. Prepare the journal entries required for Pharoah in 2017

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.