Port Automotive Supply enters into a contract to supply Ivanhoe Electrocar Company with 400 automotive tires at a price of $35 per tire on August 4, 2021. The tires were delivered to Ivanhoe on September 18, 2021, FOB destination, and terms are n/30. No returns are expected and Ivanhoe does not offer a warranty on the tires because one is provided by the manufacturer. The cost of the tires to Port is $17 per tire. Port is unable to determine the collectibility of the amount from Ivanhoe because it is a new company, but Ivanhoe pays the amount in full on November 4, 2021. Using the revenue recognition criteria for the earnings approach, answer the following questions: Your answer is correct Does Port have any control over the goods or continuing involvement once the tires are delivered? No Your answer is correct. Can this transaction be measured reliably? Transaction be measured reliably. can Your answer is correct. Is it probable that there will be an increase in economic resources to Port? cannot be established. The probability that there will be an increase in the economic resources to Port Are the costs associated with the sale known? If so, how much are the costs? Yes The costs is $ 6800 Date Account Titles and Explanati 7200 t. 18, 2021 Accounts Receivable 6800 Inventory Returns 14,0 Deferred Gross Profit (To record deferred gross profit.) 14,000 6.4.2021 Cash 14. Accounts Receivable (Collection on account.) 14,000 1, 2021 Deferred Gross Profit (To record deferred gross profit.) 14.000 Cash 14,000 Accounts Receivable (Collection on account.) 14,000 Deferred Gross Profit 6800 Cost of Goods Sold 7200 Sales (To record sales and cost of goods sold.)