Register
On May 10, 2020, Marin Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,060 on July 15, 2020. The cost of the goods is $1,
374,327 views
41 votes
41 votes
On May 10, 2020, Marin Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,060 on July 15, 2020. The cost of the goods is $1,350. Marin delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Marin related to this contract. Either party may terminate the contract without compensation until one of the parties performs

User Rgfvfk Iff
by
2.6k points

1 Answer

16 votes
16 votes

Answer:

May 15, 2020

No Entry

June 15, 2020

Debit: A/R for 2,060

Credit: Revenue for 2,060

Debit: COGS for 1,350

Credit: Inventory for 1,350

July 15, 2020

Debit: Cash for 2,060

Credit: A/R for 2,060

Step-by-step explanation:

Preparation of the journal entries for Cosmo related to this contract.

May 15, 2020

No Entry

June 15, 2020

Debit: A/R for 2,060

Credit: Revenue for 2,060

Debit: COGS for 1,350

Credit: Inventory for 1,350

July 15, 2020

Debit: Cash for 2,060

Credit: A/R for 2,060

User Alexandru Vlas
by
3.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be
Link Copied!