On May 1, 2023, Pronghorn Inc. entered into a contract to deliver one of its specialty mowers to Marigold Landscaping Co. The contract requires Marigold to pay the contract price of $3,500 in advance on May 15, 2023. Marigold pays Pronghorn on May 15, 2023, and Pronghorn delivers the mower (with a cost of $2,300) on May 31, 2023. Pronghorn has a perpetual inventory system. (a) Prepare the journal entry on May 1, 2023, for Pronghorn. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
On May 1, 2023, Pronghorn Inc. entered into a contract to deliver one of its specialty mowers to Marigold Landscaping Co. The contract requires Marigold to pay the contract price of $3,500 in advance on May 15, 2023. Marigold pays Pronghorn on May 15, 2023, and Pronghorn delivers the mower (with a cost of $2,300) on May 31, 2023. Pronghorn has a perpetual inventory system. (a) Prepare the journal entry on May 1, 2023, for Pronghorn. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On May 1, 2023, Pronghorn Inc. entered into a contract to deliver one of its specialty mowers to Marigold Landscaping Co. The
contract requires Marigold to pay the contract price of $3,500 in advance on May 15, 2023. Marigold pays Pronghorn on May 15,
2023, and Pronghorn delivers the mower (with a cost of $2,300) on May 31, 2023. Pronghorn has a perpetual inventory system.
(a)
Prepare the journal entry on May 1, 2023, for Pronghorn. (Credit account titles are automatically indented when the amount
is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts.)
Account Titles and Explanation
Debit
Credit
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