Make the journal entry topper company would record

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On October 15, Topper modifies the agreement to sell an additional 500 tie-dyed shits for $4,000 ($8.00 each * 500 shirts) which is significantly lower than Topper's stand-alone selling price at that time. So they still need to deliver 100 from the agreement made on October 1 plus another 500 for a total of 600 tie-dyed flags.

  • On October 31, Topper delivers 100 shirts and receives $1,000 cash.

Problem 1: Prepare the journal entry Topper Company would record to recognize revenue on October 31:

Reference no: EM132687704

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