Question: (Revenue Recognition-Point of Sale) Jupiter Company sells goods on January 1 that have a cost of $500,000 to Danone Inc. for $700,000, with payment due in 1 year. The cash price for these goods is $610,000, with payment due in 30 days. If Danone paid immediately upon delivery, it would receive a cash discount of $10,000. Instructions
(a) Prepare the journal entry to record this transaction at the date of sale.
(b) How much revenue should Jupiter report for the entire year?