Question

how would you record the following transcation as a journal entry?

Received cash for a delivery to be made in 60 days in the amount of $1,600.

Answer 1

Whenever cash is received and the transaction is completed by way of sale at that time, then cash account will be debited and corresponding sales account will be credited.

In this case cash is received but the delivery will be made in a future date i.e. in 60 days for an amount of $1,600.

So, company is owes to the customer for the delivery.

Journal entry on receipt of cash:
Date		Account Title and Explanation	Ref.	Debit                ($)	Credit               ($)
XX-XX-20XX		Cash a/c		$1,600
		To Accounts Receivable a/c			$1,600
		(Being cash received for delivery to be made in 60 days))
Journal entry on delivery:
Date		Account Title and Explanation	Ref.	Debit                ($)	Credit               ($)
XX-XX-20XX		Accounts Receivable a/c		$1,600
		To Customer a/c			$1,600
		(Being delivery made to customer)