On July 8, Compusoft receives $250,000 from a customer toward a cash sale of $1 million for customized computer equipment to be completed on August 1. The remaining $750,000 payment is received upon delivery of the product on August 1. The equipment had a total production cost of $700,000. What journal entries should Compusoft record on July 8 and August 1? Assume Compusoft uses the perpetual inventory system.
What will be an ideal response?
| July 8 | Debit | Credit |
| Cash | 250,000 | ? |
| Deferred Revenue | ? | 250,000 |
| August 1 | ? | ? |
| Cash | 750,000 | ? |
| Deferred Revenue | 250,000 | ? |
| Sales Revenue | ? | 1,000,000 |
| Cost of Goods Sold | 700,000 | ? |
| Inventory | ? | 700,000 |
Business
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