Exercise 18-1
Jupiter Company sells goods that have a cost of $430,000 toDanone Inc. for $720,000, with payment due in 1 year. The cashprice for these goods is $606,000, with payment due in 30 days. IfDanone paid immediately upon delivery, it would receive a cashdiscount of $15,000. Jupiter Company accepts a note receivable fromDanone Inc. to pay for the goods.
(a) Prepare the journal entry to record thistransaction at the date of sale. (Jupiter records sales discountsusing the net method) (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.)
Account Titles and Explanation
Debit
Credit
(b) How much revenue should Jupiter report for theentire year?
Total revenue
$
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