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26 December, 05:06

On December 18, Intel receives $259,000 from a customer toward a cash sale of $2.59 million for computer chips to be completed on January 23. The computer chips had a total production cost of $1.59 million. What journal entries should Intel record on December 18 and January 23

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  1. 26 December, 07:04
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    Date General Journal Debit Credit

    Dec. 18 Cash $259,000

    Unearned revenue $259,000

    (To record advance receipt of cash)

    Jan. 23 Cash (2590000 - 259000) $2,331,000

    Unearned revenue $259,000

    Sales revenue $2,590,000

    (To record cash sale)

    Jan. 23 Cost of goods sold $1,590,000

    Inventory $1,590,000

    (To record cost of goods sold)
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