Question: Finch Industries shipped 550 000 of merchandise on consignment to Royal
Finch Industries shipped $550,000 of merchandise on consignment to Royal Crown Company. Finch paid freight costs of $5,000. Royal Crown Company paid $1,500 for local advertising, which is reimbursable from Finch. By year end, 75% of the merchandise had been sold for $618,750. Royal Crown notified Finch, retained a 10% commission, and remitted the cash due to Finch. Prepare all of the journal entries required by Finch for this transaction under the earnings approach.
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