Blossom Manufacturing Inc. shipped merchandise with a total value of 566,000 to FFA Retailing Ltd. on May 1. The agreement between the two companies was that FFA was to sell the product on consignment for Blossom Manufactunng. Blossom incurred 54,600 in shipping costs in order to ship the merchandise. FFA paid a local newspaper 51,800 for advertising costs (which Blossom promised to reimburse). At September 30, the end of the accounting year for both companies, FFA had sold 75% of the merchandise for total sales of 573,000. FFA 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 0 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 0 for the amounts.)