On October 1, 2017, Ivanhoe Inc. entered into a contract to sell a custom van to

Question

On October 1, 2017, Ivanhoe Inc. entered into a contract to sell a custom van to Smith Tours for $36,600. Under the contract Smith is to pay Ivanhoe $4,900 on October 10, 2017 and pay the remainder of the purchase price upon delivery (scheduled for October 31, 2017). Smith makes the $4,900 payment in a timely manner. Ivanhoe delivers the van (with cost of $27,100) on October 31, 2017.

Prepare Ivanhoe's journal entry on October 1, 2017

Account Titles and Explanation.       Debt.      credit
( 2 entries)

Prepare Ivanhoe journal entry on October 10, 2017

Account Titles and Explanation.        Debit.      credit
(2 entries)

I wasn't sure if you would be able to see the photo.

Explanation / Answer

Journal entry:

Date Accounts Titles Debit $ Credit $ Oct 1 2017 Smith Tours 36600 Assets - Custom Van 27100 Income on sale of Van 9500 (being sale of custom van to smith tours) Oct 10 2017 Cash 4900 Smith Tours 4900 (being partial amount received on sale of van)

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