) On April 3 , Hamilton Company sold $ 50,000 of merchandise on account to Ranger Corporation , terms 5 / 10 , n / 30 , FOB shipping point . Hamilton 's cost of sales for this merchandise was $ 34,000 . The merchandise left Hamilton 's facility on April 4 and arrived at Ranger on April 10 . Ranger paid the invoice for the merchandise on April 11 . Sale of Merchandise ( Part 1 ) Journal Entry Date Accounts Debit Credit April 4 Accounts Receivable 50,000 Sales Revenue 50,000 Cost of sales ( Part 2 ) Journal Entry Date Accounts Debit Credit April 4 Cost of Goods Sold 34000 Inventory 34000