On August 3, 2019, Grace Electric Supply agreed to manufacture and supply 650 electrical control units for a particular customer who deposited $136,500 toward the purchase price upon signing the one-year purchase agreement, which set the selling price of each control unit at $1,050. In December 2019, 125 units were delivered to the customer and the remaining units were delivered in January 2020. The customer pays in cash upon delivery for any units not covered by the deposit.
A)Record the journal entry to record the receipt of the customer deposit during 2019.
B)Record the journal entry for the delivery of 125 units to the customer in 2019. How would the customer's deposit be reported in the financial statements at the end of 2019?
C)Record the entry for the delivery of the remaining units to the customer in 2020.
Correct Answer:
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