SensorIt. Inc believes the 6/30/16 sale to Albertson's ( 1,500 refrigeration sensor units) meets revenue recognition criteria and therefore the $275,000 sale on account should bebooked in 2016. Additional Information
1. If the transcation is included , SensorLt Inc.'s senior managementwill receive bonus dollars totaling $225,000. If the Transaction is not included no bonus payout will take place for fiscal year 2016 perfomance
2. According to the accountant the following adjusting entry will be needed
DR COGS $120000
CR Inventory $120000
Please describe the impact of the above on financial staments if the above transaction is recognized in 2016 and provide the relevant adjusting enteries.