On May 1, 2020, 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, 2020. Kickapoo pays Richardson on May 15, 2020, and Richardson delivers the mower (with a cost of $565) on May 31, 2020. Richardson follows IFRS.

Instructions

a. Prepare the journal entry on May 1, 2020, for Richardson.

b. Prepare the journal entry on May 15, 2020, for Richardson.

c. Prepare the journal entry on May 31, 2020, for Richardson.

d. Would the journal entries above change had Richardson followed ASPE?