Question

On December​ 23, 20182018​, RobertsonRobertson Sports Manufacturing sells a truckload of merchandise to the Sports WorldSports World store in ToledoToledo​, Ohio. The terms of the sale are FOB destination. The truck runs into bad weather on the way to ToledoToledo and​ doesn't arrive until January​ 2, 20192019. RobertsonRobertson​'s invoice totals $ 170 comma 000$170,000. The​ company's year-end is December 31. What amount should RobertsonRobertson reflect in its 20182018 income statement for this​ sale?

Answer 1

$0

Step-by-step explanation:

As the goods are shipped are FOB destination, no revenue will be recognized till the goods reach the destination.

$0 revenue or expense will be reflected in its 2018 income statement for this​ sale