On December 23, 2012, Big Sky Sports Manufacturing sells a truckload of sporting goods to the Sports R Us store in Amarillo, Texas. The terms of the sale are FOB destination. The truck runs into bad weather on the way to Amarillo and doesn’t arrive until January 2, 2013. Big Sky Sports Manufacturing’s invoice totals $126,000 including sales tax. The company’s year-end is December 31. What should Big Sky Sports Manufacturing reflect in its 2012 income statement for this sale?
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