- X i Requirements 1. Prepare the journal entries for Redstone 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 (Redstone 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 Redstone Company uses the gross method of recording sales discounts.) Print Done S5-4 (similar to) On April 3, Redstone Company sold $25,000 of merchandise on account to Milton Corporation, terms 5/10, 1/30, FOB shipping point Redstone's cost of sales for this merchandise was $17,000. The merchandise loft Redstone's facility on April 4 and arrived at Miton on April 10 Milton pad the invoice for the merchandise on April 11 Read the requirements Requirement 1. Prepare the journal entries for Redstone 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 Date Accounts Debit Credit April 4 Sales Revenue 25000