Reference no: EM133005092
Question - Sanford and Son sells athletic equipment. The following events, related to a special customer order, occur as described below:
-September 1, 2019: Sanford receives the special order for 300 football helmets at a selling price of $100 each, including delivery at a future convenient time and location. The customer, with whom Sanford has had a long-term, trouble-free relationship, pays $5,000 as a deposit, and agrees to pay the rest on delivery. Sanford immediately orders $20,000 worth of helmets from its supplier and pays a $5,000 deposit for them.
-September 20, 2019: Sanford pays a $15,000 balance due to the supplier upon delivery of the helmets to its warehouse.
-October 1, 2019: The customer calls for delivery of the helmets and pays the balance of $25,000 when they arrive at the customer site.
On October 1, 2019, upon delivery of the helmets to the customer and the payment of the balance due, how should the transaction be recorded in Sanford's financial accounting system?
-debit cash $25,000; debit advance from customer $5,000; credit sales $30,000; and debit cost of goods sold $20,000; credit inventory $20,000
-debit cash $25,000; credit sales $25,000
-debit cash $25,000; credit account receivable $25,000; and debit cost of goods sold $20,000; credit inventory $20,000
-debit cash $25,000; credit accounts receivable $25,000; and debit cost of goods sold $30,000; credit sales $30,000
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: On October 1, 2019, upon delivery of the helmets to the customer and the payment of the balance due, how should the transaction be recorded
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