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Revenue recognition at time of sale and advances from customers.Pret a Manger is a food retailer with stores in the United Kingdom and the United States and is known for its fast but fresh food menu. A customer shopping at a London Heathrow store purchased a ham and cheese baguette (£4.50), a small fruit salad (£2.40), and a banana-bran muffin (£1.50). The customer paid with cash. a. What journal entry will Pret a Manger record for this transaction? b. Suppose that, in addition to the above items, the customer purchased a Pret a Manger card (to use for future purchases at Pret a Manger stores) for £40.00. What journal entry will Pret a Manger record for this transaction?c. Suppose that, for the original transaction described in this problem, the customer did not pay with cash but used a Pret a Manger card purchased a month earlier. Assume there is a sufficient balance on the card to cover the cost of his purchases. What journal entry did Pret a Manger record?
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