Answer:
The Journal entry and their narrations is shown below
Explanation:
The Journal entry is shown below:-
1. Cash Dr, $200,000
To Unearned sales revenue $200,000
(Being unearned sales revenue is recorded)
2. Cash Dr, $700,000
Unearned sales revenue Dr, $200,000
To Sales revenue $500,000
(Being sales revenue is recorded)
3. Cost of Goods Sold Dr, $650,000
To Merchandise inventory $650,000
(Being cost of goods sold is recorded)
