On January 1, 2017, Fryer Company enters into a contract to supply 600 pastry frying machines to
Fantastic news! We've Found the answer you've been seeking!
Question:
On January 1, 2017, Fryer Company enters into a contract to supply 600 pastry frying machines to a regional donut retailer. The machines will be delivered at a rate of 25 machines per month over 2 years at a transaction price of $1,000 per machine. The salesperson received a $36,000 sales commission on the date the contract was signed. The journal entry to record the transaction on January 1, will include a:
a) debit Prepaid Sales Commissions for $36,000.
b) debit Sales Commission Expense for $36,000.
c) credit Sales Revenue $600,000.
d) credit Sales Revenue $564,000.
Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date: