Question

On October 1, 2017, Carla Inc. entered into a contract to sell a custom van to Smith Tours for $43,000. Under the contract, Smith is to pay Carla $4,700 on October 10, 2017 and pay the remainder of the purchase price upon delivery (scheduled for October 31, 2017). Smith makes the $4,700 payment in a timely manner. Carla delivers the van (with cost of $33,800) on October 31, 2017. Prepare Carla’s journal entry on October 1, 2017. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit enter an account title No Entry enter a debit amount 0 enter a credit amount enter an account title No Entry enter a debit amount enter a credit amount 0 eTextbook and Media List of Accounts Prepare Carla’s journal entry on October 10, 2017. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare Carla’s journal entry on October 31, 2017. (Credit account titles are automatically indented when 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.)

Answer 1

Answer:
Preparation of Journal Entries
Date	Particulars	Debit (in $)	Credit (in $)
October - 01	No Entry	-
	No Entry		-
	(Since no revenue is recognized)
October - 10	Cash	$4,700
	Unearned/ Accured Sale Revenue		$4,700
	(To record the Advance Payment)
October - 31	Cash	$38,300
	Unearned / Accured Sale Revenue	$4,700
	Sales Revenue		$43,000
	(To record the sales)
October - 31	Cost of Goods Sold	$33,800
	Inventory		$33,800
	(To record the cost of goods sold)