Question

Jupiter Company sells goods that have a cost of $500,000 to Danone Inc. for $700,000, with payment due in 1 year. The cash price for these goods is $610,000, with payment due in 30 days. If Danone paid immediately upon delivery, it would receive a cash discount of $10,000. Jupiter Company accepts a note receivable from Danone Inc. to pay for the goods.

(a) Prepare the journal entry to record this transaction at the date of sale. (Jupiter records sales discounts using the net method) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)