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Assume the same facts as in RE18-1, except that Lilac Corporation defers the recognition of revenue to the period when the cash is received. Prepare the journal entries relating to the In RE18-1, The company contracts to produce and sell an item of inventory to a customer for $250. It costs $150 cash to manufacture the item.The company sells the item on credit.During production, the company bills the customer for a partial billing of $210.The company collects $80 cash from the customer in partial payment.Assume that the company has not yet delivered the item to its customer, but advances the recognition of revenue to the period of production.(a) Manufacturing of inventory,
(b) Sale of inventory,
(c) Cash collection,
(d) Revenue recognition based on the cash received.
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