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Port Automotive Supply enters into a contract to supply Pharoah Electrocar Company with 360 automotive tires at a price of $43 per tire on August 4, 2021. The tires were delivered to Pharoah on September 18, 2021, FOB destination, and terms are n/30. No returns are expected and Pharoah does not offer a warranty on the tires because one is provided by the manufacturer. The cost of the tires to Port is $25 per tire. Port is unable to determine the collectibility of the amount from Pharoah because it is a new company, but Pharoah pays the amount in full on November 4, 2021. Using the revenue recognition criteria for the earnings approach, answer the following questions: Does Port have any control over the goods or continuing involvement once the tires are delivered? No List of Accounts Can this transaction be measured reliably? Transaction can be measured reliably. Assistance Used List of Accounts Is it probable that there will be an increase in economic resources to Port? The probability that there will be an increase in the economic resources to Port can be established. List of Accounts Are the costs associated with the sale known? If so, how much are the costs? The costs is $ I Prepare any journal entries required to recognize revenue on the appropriate dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) ide 3 Date Account Titles and Explanation (To record deferred gross profit.) (Collection on account.) Nov. 4, 2021 Debit Credit

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