Unearned revenue links cash with sales revenue

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On March 15, the Spinnaker Company received 4,500 in cash from acustomer who ordered a custom sail for her racing yacht. Thecompany completed the Sail and delivered it on April 30. TheSpinnaker Company incurred costs of 3,000 in making thesail. Assume the company recorded the manufacturing costs inthe Merchandise Inventory account.

A. Record the transaction on March 15.

B. Record the transaction on April 30.

C. Prepare a table that illustrates how Unearned Revenue links Cash with Sales Revenue.

Reference no: EM13259298

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