On May 1, 2017, Green Machine Inc. entered into a contract to deliver one of its specialty mowers to Schroeter Landscaping Co. The contract requires Schroeter to pay the contract price of $3,200 in advance on May 15, 2017. Schroeter pays Green Machine on May 15, 2017, and Green Machine delivers the mower (with cost of $2,150) on May 31, 2017. Green Machine has a perpetual inventory system.
Instructions
(a) Prepare the journal entry on May 1, 2017 for Green Machine.
(b) Prepare the journal entry on May 15, 2017 for Green Machine.
(c) Prepare the journal entry on May 31, 2017 for Green Machine.