Indicate which of the following events would result in recognizing revenue for the year in which the described event takes place; indicate the amount and the account. Give the journal entry that would be made in each case. (Take the selling company’s point of view.)
1. Dell Inc. sold a computer system worth $10,000; the customer financed the purchase because he didn’t have any cash.
2. Steel USA is producing 3 tons of steel for American Cans. It costs $4,500 per ton to produce, but American Cans has promised to pay $7,750 per ton when it receives the steel. Steel USA will probably ship it in the near future.