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On May 10, 2017, Cosmo 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 $2,000 on July 15, 2017. The cost of the goods is $1,300. Cosmo delivers the product to Greig on June 15, 2017, and receives payment on July 15, 2017. Prepare the journal entries for Cosmo related to this contract. Either party may terminate the contract without compensation until one of the parties performs.

Respuesta :

TomShelby

Answer:

June 15th, 2017

accounts receivables      2,000 debit

            sales revenues                   2,000 credit

July 15th, 2017

cash                                    2,000 debit

          accouns receivables               2,000 credit

Explanation:

The contract is perform when Cosmo delvier the goods to Greig than aren't rejected. Greig accepted the good thus, the contract is valid from that date.

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