On April 3, Timken Company sold $40,000 of merchandise on account to Milton Corporation, terms 3/10, n/30, FOB shipping point. Timken's cost of sales for this merchandise was $30,000. The merchandise left Timken's facility on April 4 and arrived at Milton on April 10. Milton paid the invoice for the merchandise on April 11. Read the requirements. Requirement 1. Prepare the journal entries for Timken Company for the sale of the merchandise, the cost of the sale, and the related receipt of payment from Milton Corporation. Assume that Milton Corporation takes the discount if payment is within the discount period. (Use the gross method to record the sales transactions. Record debits first, then credits. Exclude explanations from any journal entries.) Prepare the journal entry for the sale of the merchandise. (Do not record the cost of the sale, we will do that in the next step.) Journal Entry Requirements Date Accounts Debit Credit April 4 Prepare the journal entry for the cost of the sale. 1. Prepare the journal entries for Timken Company for the sale of the merchandise, the cost of the sale, and the related receipt of payment from Milton Corporation. Assume that Milton Corporation takes the discount if payment is within the discount period. 2. Indicate which company (Timken or Milton) owns the merchandise at the end of each of the following dates: a. April 3 b. April 4 c. April 10 (Assume that Timken Company uses the gross method of recording sales discounts.) Journal Entry Date Accounts Debit Credit April 4 Print Done Prepare the journal entry for the related receipt of payment from Milton Corporation. Assume that Milton Corporation takes the discount if payment is within the discount period. Journal Entry Date Accounts Debit Credit April 11 Choose from any list or enter any number in the input fields and then continue to the next question. On April 3, Timken Company sold $40,000 of merchandise on account to Milton Corporation, terms 3/10, n/30, FOB shipping point. Timken's cost of sales for this merchandise was $30,000. The merchandise left Timken's facility on April 4 and arrived at Milton on April 10. Milton paid the invoice for the merchandise on April 11. Read the requirements April 4 Prepare the journal entry for the cost of the sale. Requirements Journal Entry Date Accounts Debit Credit April 4 1. Prepare the journal entries for Timken Company for the sale of the merchandise, the cost of the sale, and the related receipt of payment from Milton Corporation. Assume that Milton Corporation takes the discount if payment is within the discount period. 2. Indicate which company (Timken or Milton) owns the merchandise at the end of each of the following dates: a. April 3 b. April 4 c. April 10 (Assume that Timken Company uses the gross method of recording sales discounts.) Prepare the journal entry for the related receipt of payment from Milton Corporation. Assume that Milton Corporation takes the discount if payment is within the discount period. Journal Entry Date Accounts Debit Credit April 11 Print Done Requirement 2. Indicate which company (Timken or Milton) owns the merchandise at the end of each of the following dates: Which company owns the merchandise? a. April 3 b. April 4 c. April 10 Choose from any list or enter any number in the input fields and then continue to the next
