Question

In the Amazon discussion board, Sindoh, a 3D printer manufacturer, used Amazon’s marketplace to sell a 3-D printer. The printer sells for $1,400 and Amazon needs to send Sindoh $1,304. Which of the following reflects the appropriate entry when Amazon receives the money from the customer who buys the printer?

A) dr. Cash 1,400 cr. Revenue 1,400

B) dr. Cash 1,400 cr. Accounts Payable 1,304 cr. Revenue 195

C) dr. Unearned Revenue 195 cr. Revenue 195

D) dr. Cash 1,400 cr. Unearned Revenue 195 cr. Revenue 1,304

Answer 1

Here Amazon received $1,400, Cash is an asset so Debit the cash for $1,400.
Amazon has payment liability $1,304 to Sindoh, a 3D printer manufacturer, so Acoounts payable is an liability So, Credit the accounts payable for $1,304.
Balance i.e., difference $1,400-$1,304= $96 is revenue of Amazon

Journal Entry is

Particulars	Debit	Credit
Cash	$1,400
Accounts payable		$1,304
Revenue		$96
(To record sale 3D printer)

Here in the option (B) there may be typo error. The real revenue is $96 instead of $195