Question: On May 1, 2014, Richardson Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo

On May 1, 2014, Richardson Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $900 in advance on May 15, 2014. Kickapoo pays Richardson on May 15, 2014, and Richardson delivers the mower (with cost of $575) on May 31, 2014.

Instructions

(a) Prepare the journal entry on May 1, 2014, for Richardson.

(b) Prepare the journal entry on May 15, 2014, for Richardson.

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