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On December​ 23, 2018​, Silverman Sports Manufacturing sells a truckload of merchandise to the Baseball World store in Cincinnati​, Ohio. The terms of the sale are FOB destination. The truck runs into bad weather on the way to Cincinnati and​ doesn't arrive until January​ 2, 2019. Silverman​'s invoice totals $ 160,000. The​ company's year-end is December 31.
1. What amount should Silverman reflect in its 2018 income statement for this​ sale?

Respuesta :

Answer:

0

Explanation:

0 amount should Silverman reflect in its 2018 income statement for this​ sale because the good was delivered after 12/31/18.

The amount that should be reflected on the 2018 income statement for this kind of sale should be $0.

The following information should be considered:

  • Since the goods have been shipped under the FOB destination so in this no revenue should be recorded until the goods are reached the destination.
  • Also, the invoice is $160,000.

Based on the above information, we can conclude that the amount that should be reflected on the 2018 income statement for this kind of sale should be $0.

Learn more: brainly.com/question/19682087