Question: Shop-at-Home Company operates a Web grocer. Customers submit their orders online to Shop-at-Home Company; Shop-at-Home then forwards the orders to a national grocery chain. The

Shop-at-Home Company operates a Web grocer. Customers submit their orders online to Shop-at-Home Company; Shop-at-Home then forwards the orders to a national grocery chain. The grocery chain arranges for assembly and shipment of the order. Shop-at-Home Company receives 3% of the retail value of all orders it takes. During January, Shop-at-Home Company received orders for groceries with a retail selling price of $400,000. These groceries cost the grocery store chain $280,000. The grocery store chain collected cash of $400,000 from the customers and paid the appropriate commission in cash to Shop-at-Home Company. Based on this information, make all journal entries necessary in January

(1) On the books of Shop-at-Home Company and

(2) On the books of the grocery store chain. Assume that the grocery store chain uses a perpetual inventory system.

Step by Step Solution

★★★★★

3.40 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Accounts Receivable 400000 003 12000 Commission Revenue 12000 Cash 12000 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

92-B-A-R-R (236).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Make the journal entries necessary to record the following eight transactions. a. Purchased inventory on account for $130,000. b. Sold goods for $100,000 cash. The goods originally cost $65,000. c....

Assume Radio Tech uses a perpetual inventory system and the FIFO cost flow method. 1. Calculate the cost of goods sold that will appear on Radio Techs income statement for the month of April. 2....

Assume Radio Tech uses a perpetual inventory system and the LIFO cost flow method. 1. Calculate the cost of goods sold that will appear on Radio Techs income statement for the month of April. 2....

Online Company operates a Web grocer. Customers submit their orders online to Online Company; Online then forwards the orders to a national grocery chain. The grocery chain arranges for assembly and...

I would like to get detail answers to the questions using Staples Inc. 10-K report for the fiscal year ending January 30,2015 and filed with the security exchange commission on March 4, 2016. please...

Corporate Finance Course it's about Whole Foods purchase by Amazon. below are the questions need to be answered, also the documents are attached. QUESTIONS: 1.The investment thesis on AMZN has ALWAYS...

At the end of Gordman Department Stores fiscal year on December 31, 2010, these accounts appeared in its adjusted trial balance. Freight-in........... $ 5,600 Merchandise Inventory........ 40,500...

Seventy-five liters of liquid ethanol at 70.0C and 55 L of liquid water at 20.0C are to be mixed in a well-insulated flask. The energy balance for this constant pressure process is Q = H. (a)...

1. (LO2) The basic present value equation has four parts. What are they?

The income statement approach to estimating uncollectible accounts expense is used by Landis Company. On February 28, the firm had accounts receivable in the amount of $437,000 and Allowance for...

16. The following information is available for a transmission line. B = 186.78 /79.46 0 ohms and C = 0.001131 /90.42 0 siemens Determine remaining constants A and D of the line. Consider up to 6...

A cone with height 8 ft and radius 6 ft, pointing downward, is filled with water to a depth of 2 ft. All of the water will be pumped out over the top of the cone. The density of water is 62.4 lb/ ft...

Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost, and sales data for the two products follow: Hawaiian Fantasy: Selling price per unit:...

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus,...

How is a corporation organized and managed?

Transfer of Receivables Use the information for Grant Company as presented in E7-20. Grant is planning to factor some accounts receivable at the end of the year. Accounts totaling $10,000 will be...

Petty Cash Mc Mann, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April. 1. On...

Petty Cash The petty cash fund of Teasdale's Auto Repair Service, a sole proprietorship, contains the following. The general ledger account Petty Cash has a balance of $300. Prepare the journal entry...

Rust Bucket Motor Credit Corporation (RBMCC), a subsidiary of Rust Bucket Motor, offered some securities for sale to the public on March 28, 2008. Under the terms of the deal, RBMCC promised to repay...

1. The Global Business Travel Association reported the domestic airfare for business travel for the current year and the previous year. Below is a sample of 12 flights with their domestic airfares...

The next dividend payment by Wyatt, Inc., will be $3.00 per share. The dividends are anticipated to maintain a growth rate of 5.75 percent, forever. Assume the stock currently sells for $49.60 per...