Milano Company shipped the following merchandise during the last week of December 2022. All sales were on credit. Sales Price Shipping Terms Date Goods Shipped Date Goods Received $5,460 FOB shipping point December 27 January 3 $3,800 FOB destination December 29 January 5 $4,250 FOB destination December 29 December 31 Required: 1. Compute the total amount of sales revenue recognized by Milano from these transactions. 2. If Milano included all of the above shipments as revenue, what would be the effect on the financial statements? Enter all amounts as positive numbers.
Milano Company shipped the following merchandise during the last week of December 2022. All sales were on credit. Sales Price Shipping Terms Date Goods Shipped Date Goods Received $5,460 FOB shipping point December 27 January 3 $3,800 FOB destination December 29 January 5 $4,250 FOB destination December 29 December 31 Required: 1. Compute the total amount of sales revenue recognized by Milano from these transactions. 2. If Milano included all of the above shipments as revenue, what would be the effect on the financial statements? Enter all amounts as positive numbers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Recording Sales and Shipping Terms
Milano Company shipped the following merchandise during the last week of December 2022. All sales were on credit.
| Sales Price | Shipping Terms | Date Goods Shipped | Date Goods Received | |
| $5,460 | FOB shipping point | December 27 | January 3 | |
| $3,800 | FOB destination | December 29 | January 5 | |
| $4,250 | FOB destination | December 29 | December 31 |
Required:
1. Compute the total amount of sales revenue recognized by Milano from these transactions.
2. If Milano included all of the above shipments as revenue, what would be the effect on the financial statements? Enter all amounts as positive numbers.
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