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Eddi Din [679]
2 years ago
9

Gupta Industries received a $380,000 prepayment from Packard Associates for the sale of new equipment. Gupta will bill Packard a

n additional $108,000 upon delivery of the equipment. Upon receipt of the $380,000 prepayment, how much should Gupta recognize for a contract asset, a contract liability, and accounts receivable? A) Contract asset $380,000, contract liability: $0, accounts receivable, $108,000. B) Contract asset: $0: contract liability: $380,000, accounts receivable, $108,000 C) Contract asset: $380,000, contract liability: $0, accounts receivable, $0. D) Contract asset: $0, contract liability: $380,000, accounts receivable, $0.
Business
1 answer:
jenyasd209 [6]2 years ago
8 0

Answer: the correct answer is D) Contract asset: $0, contract liability: $380,000, accounts receivable, $0.

Explanation: Contract asset is $0 because the asset belongs to the company that has the equipment which is Packard Associates. Gupta has a liability of $380,000 because it has to deliver the equipment. Accounts receivable are $0 because the equipment hasn't been delivered yet.

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Answer:

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7 0
3 years ago
Presented below is information related to Rembrandt Inc.’s inventory. (per unit) Skis Boots Parkas Historical cost $190.00 $106.
dybincka [34]

Answer:

A.Skis = 161.00

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(b)Skis = 161

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