Questions:
1. On December 28, 2010 Ranger Supply Co. ships $155,000 of merchandise to the Fox Company. It takes 5 days for the merchandise to arrive at Fox Company. Both Ranger Supply Co. and Fox Company have December 31 year-ends. Can Ranger Supply Co. report this sale on its income statement for fiscal 2010? Why?
2. What is the available sales/purchase discount? When would it be available? If the discount isn't taken, the invoice must be paid by which date?