On December 18, Intel receives $260,000 from a customer as down payment on a total sale of $2.6 million for computer chips to be completed on January 23. On January 23, the computer chips were delivered and the remaining cash was received from the customer. Assume Intel uses the perpetual inventory system, and the computer chips had a total production cost of $1.6 million. Determine the financial statement effects of (1) the collection of the down payment on December 18 and (2) the delivery of inventory and collection of remaining cash on January 23. Complete this question by entering your answers in the tabs below.
On December 18, Intel receives $260,000 from a customer as down payment on a total sale of $2.6 million for computer chips to be completed on January 23. On January 23, the computer chips were delivered and the remaining cash was received from the customer. Assume Intel uses the perpetual inventory system, and the computer chips had a total production cost of $1.6 million. Determine the financial statement effects of (1) the collection of the down payment on December 18 and (2) the delivery of inventory and collection of remaining cash on January 23. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 18, Intel receives $260,000 from a customer as down payment on a total sale of $2.6 million for computer
chips to be completed on January 23. On January 23, the computer chips were delivered and the remaining cash was
received from the customer. Assume Intel uses the perpetual inventory system, and the computer chips had a total
production cost of $1.6 million.
Determine the financial statement effects of (1) the collection of the down payment on December 18 and (2) the delivery of
inventory and collection of remaining cash on January 23.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the financial statement effects of the collection of the down payment on December 18. (Enter your answers in dollars, r
example, $5.5 million should be entered as 5,500,000.)
260.000 Cash
Revenues
Assets
Income Statement
Balance Sheet
Expenses
Liabilities
260,000 Deferred Revenue
Net Income
Stockholders'
Equity
0
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