On October 10, 2017, Executor Co. entered into a contractwith Belisle Inc. to transfer Executor’s specialty products(sales value of $10,000, cost of $6,500) on December 15,2017. Belisle agrees to make a payment of $5,000 upondelivery and signs a promissory note to pay the remainingbalance on January 15, 2018. What entries does Executormake in 2017 on this contract? Ignore time value ofmoney considerations.
On October 10, 2017, Executor Co. entered into a contractwith Belisle Inc. to transfer Executor’s specialty products(sales value of $10,000, cost of $6,500) on December 15,2017. Belisle agrees to make a payment of $5,000 upondelivery and signs a promissory note to pay the remainingbalance on January 15, 2018. What entries does Executormake in 2017 on this contract? Ignore time value ofmoney considerations.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 22CE: Service Revenue Softball Magazine Company received advance payments of $75,000 from customers during...
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On October 10, 2017, Executor Co. entered into a contract
with Belisle Inc. to transfer Executor’s specialty products
(sales value of $10,000, cost of $6,500) on December 15,
2017. Belisle agrees to make a payment of $5,000 upon
delivery and signs a promissory note to pay the remaining
balance on January 15, 2018. What entries does Executor
make in 2017 on this contract? Ignore time value of
money considerations.
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