On April 3, Hamilton Company sold $50,000 of merchandise on

On April 3, Hamilton Company sold $50,000 of merchandise on account to Ranger Corporation, terms 5/10, n/30, FOB shipping point. Hamilton’s cost of sales for this merchandise was $34,000. The merchandise left Hamilton’s facility on April 4 and arrived at Ranger on April 10. Ranger paid the invoice for the merchandise on April 11.

1. Prepare the journal entries for Hamilton Company for the sale of the merchandise, the cost of the sale, and the related receipt of payment from Ranger Corporation. Assume that Ranger Corporation takes the discount if payment is within the discount period.

2. Indicate which company (Hamilton or Ranger) owns the merchandise at the end of each of the following dates:

a. April 3

b. April 4

c. April 10

A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...


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