The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd., the consignee, for the month of June 2020. Wang uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Ren to Wang and a net payment is made. The agreement stipulates that Ren is to receive a 15% (of sales) commission and a 6% (of sales) rebate to offset its advertising expenses.

June 1 Wang Corp. ships merchandise costing $455,000 on consignment to Ren Stores Ltd.

June 5 Wang pays the freight of $5,000 for the above shipment of June 1.

June 30 Summary entry for the month of June: Ren sells half of the merchandise for $600,000 cash.

June 30 Ren notifies Wang that 50% of the merchandise has been sold for $600,000 and remits a cheque for the amount due under the consignment agreement. Wang records the receipt of the cheque from Ren.

Instructions

a. Prepare the journal entries necessary on the books of Wang Corp.

b. Prepare the journal entries necessary on the books of Ren Stores Ltd.