A customer paid $180,000 for a special order on 9/22/2020. The cash receipt was appropriately recorded (debit to cash and credit to unearned revenue), but no entry was made on 12/31/2021 when the order was shipped. The inventory cost $140,400 to produce.

Would there be a correcting journal entry and how would this effect the financial statement?

Answer rating: 100% (QA)

Yes there would need to be a correcting journal entry to recognize the reve... View the full answer