Contract Modification Cumulative Catch$-$Up Method

On October $15,2023$ Tri$-$Area inc. entereat into a contract to sell $750$ units

for $$11\mathrm{.}250($$$15$ per unit$)$ to Desk Topinc. fi$-$Area expected to dellver the units

in December and January. On December $15$ after $500$ units were dellvered

reduced the price on the remaining units to $$10\mathrm{.}50$ per unit.

Needed: Debit Credit

Sales revenue

Unearned revenue

Calculations here:

Entry for the first $500$: Debit Credit

Cash

Sales revenue

Agreement change

Paid

Balance at new price:

Total sales

Average price

First $500$ at average price:

Paid

Unearned