You are the Senior Accountant for the Patty Corporation, which has several divisions. They each keep their own accounting books and have chosen the appropriate method of revenue recognition based on their operations.

Pat's Electronics Division

Pat's Electronics Division sells computers through agents in various cities. Agents send orders and down payments to our company. The division then ships the goods F.O.B. shipping point directly to the customers. Revenue is recognized at the point of sale.

Additional Financial Data:

Orders for fiscal year 2012 ................................................$3,000,000

Down Payments collected in 2012 .......................................$300,000

Billed and shipped in 2012 ................................................$2,400,000

Freight billed in 2012 ..............................................................$70,000

Commissions paid to Agents (after ship to customer) ..................10%

Warranty Returns as % of Sales ......................................................1%