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29 January, 01:33

On November 1, 2018, Green Valley Farm entered into a contract to buy a $150,000 harvester from John Deere. The contract required Green Valley Farm to pay $150,000 in advance on November 1, 2018. The harvester (cost of $110,000) was delivered on November 30, 2018. The journal entry to record the contract on November 1, 2018 includes a Group of answer choices a) credit to Accounts Receivable for $150,000 b) credit to Sales Revenue for $150,000. c) credit to Unearned Sales Revenue for $150,000. d) debit to Unearned Sales Revenue for $150,000.

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  1. 29 January, 01:59
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    d) debit to Unearned Sales Revenue for $150,000

    Explanation:

    Green Valley Farm Journal entry

    Dr Unearned Sales Revenue 150,000

    Cr Sales Revenue150,000

    Dr Cost of Goods Sold 110,000

    Cr Inventory110,000

    Therefore the journal entry to record the contract on November 1, 2018 is debit to Unearned Sales Revenue for $150,000
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