Accounting for Special Transactions On January 1, 2019, Castrano enters into a non-cancellable contract with Recio for the sale of an excavator for P700,000. The excavator will be delivered to Recio on April 1, 2019. The contract requires Recio to pay the P700,000 in advance on February 1, 2019 and Recio makes the payment on March 1, 2019.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Accounting for Special Transactions

On January 1, 2019, Castrano enters into a non-cancellable contract with Recio for the sale of an excavator
for P700,000. The excavator will be delivered to Recio on April 1, 2019. The contract requires Recio to pay the P700,000 in advance on February 1, 2019 and Recio makes the payment on March 1, 2019.

On January 1, 2019, the amount of accounts receivable to be recorded:
a. None b. P350,000 c. P700,000 d. P1,400,000
5. On January 1, 2019, the amount of revenues to be recorded:
a. None b. P350,000 c. P700,000 d. P1,400,000

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