On April 2, 2021, Unbreakable Gifts Inc. shipped merchandise costing $40,000 to The Gift Warehouse on consignment. Unbreakable paid $2,000 in shipping costs to deliver the inventory. On June 5, 2021, The Gift Warehouse paid $1,000 in advertising on behalf of Unbreakable. On September 30, 2021, The Gift Warehouse advised Unbreakable that all of the inventory had been sold for a total of $75,000. On October 15, 2021, Unbreakable received payment from The Gift Warehouse for the proceeds, less a 15% commission and the outlay for the advertising. Required: Prepare all the journal entries for Unbreakable Gifts Inc. to account for the transaction from April 2 through October 15.
On April 2, 2021, Unbreakable Gifts Inc. shipped merchandise costing $40,000 to The Gift Warehouse on consignment. Unbreakable paid $2,000 in shipping costs to deliver the inventory. On June 5, 2021, The Gift Warehouse paid $1,000 in advertising on behalf of Unbreakable. On September 30, 2021, The Gift Warehouse advised Unbreakable that all of the inventory had been sold for a total of $75,000. On October 15, 2021, Unbreakable received payment from The Gift Warehouse for the proceeds, less a 15% commission and the outlay for the advertising. Required: Prepare all the journal entries for Unbreakable Gifts Inc. to account for the transaction from April 2 through October 15.
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 9EB: Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19...
Related questions
Question
- On April 2, 2021, Unbreakable Gifts Inc. shipped merchandise costing $40,000 to The Gift Warehouse on consignment. Unbreakable paid $2,000 in shipping costs to deliver the inventory. On June 5, 2021, The Gift Warehouse paid $1,000 in advertising on behalf of Unbreakable. On September 30, 2021, The Gift Warehouse advised Unbreakable that all of the inventory had been sold for a total of $75,000. On October 15, 2021, Unbreakable received payment from The Gift Warehouse for the proceeds, less a 15% commission and the outlay for the advertising.
Required:
Prepare all the
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
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.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College