On April 3, Parker Company sold $5,000 of merchandise to Wheeler Corporation, terms 2/10, n/30, FOB shipping point. Parker Company's cost of sales for this merchandise was $4,000. The merchandise left Parker Company's facility on April 4 and arrived at Wheeler Corporation on April 10. Wheeler Corporation paid the invoice for the merchandise on April 11.
Requirements
1. Prepare the journal entries for Parker Company for the sale of the merchandise, the cost of the sale, and the related receipt of payment from Wheeler Corporation. Assume that Wheeler Corporation takes the discount if payment is within the discount period. (You do not need to record any estimated returns/refunds for this exercise.)
2. Indicate which company (Parker Company or Wheeler Corporation) owns the merchandise at the end of each of the following dates:
a. April 3
b. April 4
c. April 10