$4$

Jain Industries received a $$310,000$ prepayment from Gupta Associates for the sale of new equipment. Jain will bill Gupta an additional $$101,000$ upon delivery of the equipment. Upon receipt of the $$310,000$ prepayment, how much should Jain recognize for a contract asset, a contract liability, and accounts receivable?

Multiple Choice

Contract asset: $$0$; contract liability: $$310,000,$ accounts receivable, $$0.$

Contract asset: $$310,000$; contract liability: $$0,$ accounts receivable, $$0.$

Contract asset: $$0$; contract liability: $$310,000,$ accounts receivable, $$101,000.$

Contract asset: $$310,000$; contract liability: $$0,$ accounts receivable, $$101,000.$