Tingey Industries sells merchandise on a consignment basis to dealers. The selling price of the merchandise averages

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Tingey Industries sells merchandise on a consignment basis to dealers. The selling price of the merchandise averages 25% above cost of merchandise. The dealer is paid a 10% commission on the sales price for all sales made. All dealer sales are made on a cash basis. The following consignment sales activities occurred during 2013.
Manufacturing cost of goods shipped on consignment. . . . . . . . . . . . . . . . $250,000
Sales price of merchandise sold by dealers . . . . .. . . . . . . . . . . . . . . . . . . . . 220,000
Payments made by dealers after deducting commission . . . . . . . . . . . . . . . . 139,000
Instructions:
1. Prepare summary entries on the books of the consignor for these consignment sales transactions.
2. Prepare summary entries on the books of the dealer consignee, assuming there is only one dealer involved.
3. Prepare the parts of Tingey Industries' financial statements at December 31, 2013, that relate to these consignment sales.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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