on december 23, 2024, silverman sports manufacturing sells a truckload of merchandise to the baseball world…

on december 23, 2024, 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 doesnt arrive until january 2, 2025. silvermans invoice totals $160,000. the companys year - end is december 31. what amount should silverman reflect in its 2024 income statement for this sale? (enter 0 for a zero amount.) amount that silverman should report as sales revenue for this sale on the income statement in 2024 = $ 0 since the goods were sold fob destination, revenue

on december 23, 2024, 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 doesnt arrive until january 2, 2025. silvermans invoice totals $160,000. the companys year - end is december 31. what amount should silverman reflect in its 2024 income statement for this sale? (enter 0 for a zero amount.) amount that silverman should report as sales revenue for this sale on the income statement in 2024 = $ 0 since the goods were sold fob destination, revenue

Answer

Brief Explanations:

Under FOB (Free - On - Board) destination terms, the seller retains ownership and the risk of loss until the goods reach the buyer's specified destination. Since the goods did not arrive at the destination (Baseball World store in Cincinnati) by the company's year - end (December 31, 2024), the revenue recognition criteria (transfer of control) is not met for the 2024 accounting period.

Answer:

Amount that Silverman should report as sales revenue for this sale on the income statement in 2024 = $0