On July 31, O'Malley Company Contracted to Have Two Products

On July 31, O'Malley Company contracted to have two products built by Taylor Manufacturing for a total of $185,000.The contract specifies that payment will only occur after both products have been transferred to O'Malley Company.O'Malley determines that the standalone prices are $100,000 for Product 1 and $85,000 for Product 2.On August 1, when Product 1 has been transferred, the journal entry to record this event include a

A) debit to Accounts Receivable for $100,000.
B) debit to Accounts Receivable for $85,000.
C) debit to Contract Assets for $85,000.
D) debit to Contract Assets for $100,000.