On May 10, 2017, Marigold Co, enters into a contract to deliver a product to Gre

Question

On May 10, 2017, Marigold Co, enters into a contract to deliver a product to Greig Inc. on June 15, 2017, Greig agrees to pay the full contract price of $1,860 on July 15, 2017. The cost of the goods is $1,190. Marigold delivers the product to Greig on June 15, 2017, and receives payment on July 15, 2017. Prepare the journal entries for Marigold related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the amount is entered. Do not indent manualy. If no entry is required, select "No entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record contract entered into) (To record sales) (To record cost of goods sold)

Explanation / Answer

10-May No entry 15-Jun Accounts receivable 1860               Sales revenue 1860 Cost of goods sold 1190               Inventory 1190 15-Jul Cash 1860           Accounts receivable 1860

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