QS 8-1 Entries for sale on credit and subsequent collection LO1 Journalize the following transactions for Kimmel Company (assume a perpetual inventory system): a. On March 1, Kimmel Company sold $40,000 of merchandise costing $32,000 on credit terms of n/30 to JP Holdings. b. On March 27, JP Holdings paid its account in full. QS 8-2 Recognizing accounts receivable and revenue LO1 Trophy Services is in the business of selling trophies, medals, and plaques. On May 15, Central High School ordered plaques and medals to reward students with high academic and extracurricular achievement. Trophy Services shipped the goods with a cost of $450 on May 25. Central High School received the goods on June 1. Upon inspecting the invoice, the order came to a price of $900 with shipping terms FOB destination and the balance is due within 30 days of receiving the goods. a. When has Trophy Services finished delivering the products? b. Is the related accounts receivable and revenue measurable in this transaction? c. Is it probable that Trophy Services will collect the amount owed from Central High School? d. Based on your analysis, conclude when Trophy Services should recognize the accounts receivable and revenue for the transaction with Central High School. Page 630