On December 23, 2021, Silverman Sports Manufacturing sells a truckload of merchandise to the Baseball World store in Cincinnati, Ohio. The terms of the sale are FOB destination. The truck runs into bad weather on the way to Cincinnati and doesn’t arrive until January 2, 2022. Silverman’s invoice totals $160,000. The company’s year-end is December 31. What amount should Silverman reflect in its 2021 income statement for this sale?

Requirements

1. Prepare the journal entries for Hamilton Company for the sale of the merchandise, the cost of the sale, and the related receipt of payment from Ranger Corporation. Assume that Ranger Corporation takes the discount if payment is within the discount period.

2. Indicate which company (Hamilton or Ranger) owns the merchandise at the end of each of the following dates:

a. April 3

b. April 4

c. April 10