Blossom Manufacturing Inc. shipped finished goods inventory with a total cost of $56,700 to Wildhorse Retailing Ltd. on May 1. The agreement between the two companies was that Wildhorse was to sell the product on consignment for Blossom Manufacturing. Blossom paid $4,800 in shipping costs in order to ship the merchandise. Wildhorse paid a local newspaper $1,500 for advertising costs (which Blossom promised to reimburse). At September 30, the end of the accounting year for both companies, Wildhorse had sold 75% of the merchandise for total sales of $60,000. Wildhorse notified Blossom of the sales, retained a 20% commission, and remitted the cash due to Blossom. (a) Prepare the journal entries required by the above transactions on the books of Blossom Manufacturing. (Round answers to O decimal places, e.g. 5,275. 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. List all debit entries before credit entries. Use 'Revenue from Consignment Sales' for the entry.)

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 7MCQ
icon
Related questions
Question

pls answer thanks

Blossom Manufacturing Inc. shipped finished goods inventory with a total cost of $56,700 to Wildhorse Retailing Ltd. on May 1. The
agreement between the two companies was that Wildhorse was to sell the product on consignment for Blossom Manufacturing.
Blossom paid $4,800 in shipping costs in order to ship the merchandise. Wildhorse paid a local newspaper $1,500 for advertising costs
(which Blossom promised to reimburse). At September 30, the end of the accounting year for both companies, Wildhorse had sold
75% of the merchandise for total sales of $60,000. Wildhorse notified Blossom of the sales, retained a 20% commission, and remitted
the cash due to Blossom.
(a)
Prepare the journal entries required by the above transactions on the books of Blossom Manufacturing. (Round answers to O
decimal places, e.g. 5,275. 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. List all debit entries before credit entries. Use 'Revenue from
Consignment Sales' for the entry.)
No. Account Titles and Explanation
1.
2.
3.
4.
(To record the shipment of merchandise to FFA on
consignment.)
(To record the payment of shipping costs.)
(To record notification of consignment goods sold and receipt
of cash remittance.)
(To record cost of goods sold and adjust inventory.)
Debit
Credit
170
Transcribed Image Text:Blossom Manufacturing Inc. shipped finished goods inventory with a total cost of $56,700 to Wildhorse Retailing Ltd. on May 1. The agreement between the two companies was that Wildhorse was to sell the product on consignment for Blossom Manufacturing. Blossom paid $4,800 in shipping costs in order to ship the merchandise. Wildhorse paid a local newspaper $1,500 for advertising costs (which Blossom promised to reimburse). At September 30, the end of the accounting year for both companies, Wildhorse had sold 75% of the merchandise for total sales of $60,000. Wildhorse notified Blossom of the sales, retained a 20% commission, and remitted the cash due to Blossom. (a) Prepare the journal entries required by the above transactions on the books of Blossom Manufacturing. (Round answers to O decimal places, e.g. 5,275. 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. List all debit entries before credit entries. Use 'Revenue from Consignment Sales' for the entry.) No. Account Titles and Explanation 1. 2. 3. 4. (To record the shipment of merchandise to FFA on consignment.) (To record the payment of shipping costs.) (To record notification of consignment goods sold and receipt of cash remittance.) (To record cost of goods sold and adjust inventory.) Debit Credit 170
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College