Maypole Industries imports goods from Taiwan and resells them to domestic Canadian markets. Maypole uses a perpetual inventory system. A typical transaction stream follows:

Required:
1. Prepare journal entries assuming the following critical events:
a. Delivery to customer.
b. Cash receipt.
c. Customer agrees to be invoiced in August once the goods have been repackaged and are ready for sale and accepts title to the goods. However, the customer requests that the goods not be shipped until Maypole is given directions as to where and when to ship.
2. Explain the circumstances under which each of these methods would be appropriate.

Transcribed Image Text:

18 24 10 22 July August September November Purchased goods for resale for $456,000 Goods repackaged and ready for sale. Cost incurred, $60,000 Goods delivered to customer. Agreed-on price, $712,000 Customer paid