A RAM Manufacturing Customer, Tri-Auto Repair, Orders Parts on August

Essay

A RAM Manufacturing customer, Tri-Auto Repair, orders parts on August 1, 20XX for delivery the following week. No journal entries are recorded at this time. The goods are shipped on August 8, 20XX and received and revenue recognized on August 10, 20XX. The selling price of the parts is $10,000 and the cost of goods sold is $6,500. Tri-Auto Repair pays their invoice on August 31, 20XX. Record the three accounting transactions.