Brief Exercise 18-2 On May 10, 2017, Pharoah Co. enters into a contract to deliv

Question

Brief Exercise 18-2 On May 10, 2017, Pharoah 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 $2,110 on July 15, 2017. The cost of the goods is $1,460. Pharoah delivers the product to Greig on June 15, 2017, and reccives payment on July 15, 2017. Prepare the journal entries for Pharoah 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 manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts) Date Account Titles and Explanation Debit Credit To record contract entered into) To record sales) To record cost of goods sold) To record payment received)

Explanation / Answer

To record contract entered into - No Entry

June 15

Greig 2110

Sales 2110

(To record sales)

Statement of Income & Expense 1460

Cost of goods sold 1460

(To record cost of goods sold)

July 15

Bank 2110

Greig 2110

(To record payment received)

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.