Recording Sales and Shipping TermsMilano Company shipped the following merchandise during the last week of December 2022. All sales were on credit.Sales PriceShipping TermsDate Goods ShippedDate Goods Received$5,460FOB shipping pointDecember 27 January 3$3,800FOB destinationDecember 29 January 5$4,250FOB destinationDecember 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.

Note: Under FOB destination, titles of goods are transferred to the buyer only when goods are…

Answered: Milano Company shipped the following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 48E

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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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