Question

On December 12, 2021, Pace Electronics received $25,200 from a customer toward a cash sale of $252,000 of diodes to be completed on January 16, 2022. What journal entries should Pace record on December 12 and January 16

Answer 1

Answer: Please find answers in explanation column

Step-by-step explanation:

Journal to record collection of cash for deferred sales.

Date Account titles Debit Credit

Dec 12 Cash $25,200

Deferred sales revenue $25,200

Journal to record the sales revenue

Date Account titles Debit Credit

Jan 16 Cash $226,800

Deferred sales revenue $25,200

Sales Revenue $252,000

Cash received = Sales Revenue - Deferred Sales revenue

= $252,000 - $25,200= $226,800