On November 1, 2021, Sunland Farm entered into a contract to buy a $144000 harvester from John Deere. The contract required Sunland Farm to pay $144000 in advance on November 1, 2021. The harvester (cost of $104000) was delivered on November 30, 2021. The journal entry to record the contract on November 1, 2021 includes a credit to Sales Revenue for $144000. debit to Unearned Sales Revenue for $144000. credit to Unearned Sales Revenue for $144000. credit to Accounts Receivable for $144000.
On November 1, 2021, Sunland Farm entered into a contract to buy a $144000 harvester from John Deere. The contract required Sunland Farm to pay $144000 in advance on November 1, 2021. The harvester (cost of $104000) was delivered on November 30, 2021. The journal entry to record the contract on November 1, 2021 includes a credit to Sales Revenue for $144000. debit to Unearned Sales Revenue for $144000. credit to Unearned Sales Revenue for $144000. credit to Accounts Receivable for $144000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On November 1, 2021, Sunland Farm entered into a contract to buy a $144000 harvester from John Deere. The contract required Sunland Farm to pay $144000 in advance on November 1, 2021. The harvester (cost of $104000) was delivered on November 30, 2021. The
credit to Sales Revenue for $144000.
debit to Unearned Sales Revenue for $144000.
credit to Unearned Sales Revenue for $144000.
credit to Accounts Receivable for $144000.
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