Exercise 18-3 On May 1, 2017, Headland Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $913 in advance on May 15, 2017. Kickapoo pays Headland on May 15, 2017, and Headland delivers the mower (with cost of $563) on May 31, 2017. (a) Prepare the journal entry on May 1, 2017, for Headland. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit May 1, 2017 (b) Prepare the journal entry on May 15, 2017, for Headland. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit May 15, 2017 (c) Prepare the journal entry on May 31, 2017, for Headland. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit May 31, 2017 (To record sales) (To record cost of goods sold)

Explanation:

The journal entries are as follows

May 1

No journal entry is required

May 15

Cash Dr $913

     To Unearned revenue $913

(Being the advance cash is received)

May 31

Unearned revenue $913

        To Service revenue $913

(Being the unearned revenue is recorded)

May 31

Cost of goods sold Dr $563

     To Inventory $563

(Being the cost is recorded)

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answer; dividing net income by 1- t ;