Question

On May 1, 2020, Riverbed 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 $990 in advance on May 15, 2020. Kickapoo pays Riverbed on May 15, 2020, and Riverbed delivers the mower (with cost of $648) on May 31, 2020. (a) Prepare the journal entry on May 1, 2020, for Riverbed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Answer 1

Answer and Explanation:

The journal entries are shown below:

On May 1

No journal entry is required as the Riverbed Inc entered into a contract for delivering of the specialty mowers to Kickapoo Landscaping Co which do not required any kind of entry because there is no need to record the entry that contains any type of contract entered