Problem 6-2. Wilson Publishing Company shipped 4 Management Encyclopedia books on a consignment basis to booksellers....

 

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Problem 6-2. Wilson Publishing Company shipped 4 Management Encyclopedia books on a consignment basis to booksellers. This book should sell for an advertising price of $ 49.50 per piece. Cost estimated per piece @ $ 25. Consignees are given a commission of 30% of the selling price and transportation costs they incur by reimbursement On December 8, 100 books were shipped to the Culver Book Store on consignment basis. The consignor estimated that the packaging costs for the books shipped were $ 85. A service fee paid by the consignor was $ 200. The consignee paid a freight charge of $ 30 for the books it received. In December, 60 books were sold per cash. Transfer of the amount due to the consignor will be made on December 31st. Both parties took a physical inventory and adjusted and closed their books at the end of the year, Requested : (1) Prepare an estimate for consignment sales that must be delivered by the consignment party by the end of December. (2) Prepare the journal entries for December in the consignee's books, assuming that (a) consignment profit is calculated separately and (b) consignment profit is not calculated separately. (3) Prepare the journal entries for December in the consignor's books, assuming that (a) consignment profit is calculated separately, and (b) consignment profit is not calculated separately. Problem 6-2. Wilson Publishing Company shipped 4 Management Encyclopedia books on a consignment basis to booksellers. This book should sell for an advertising price of $ 49.50 per piece. Cost estimated per piece @ $ 25. Consignees are given a commission of 30% of the selling price and transportation costs they incur by reimbursement On December 8, 100 books were shipped to the Culver Book Store on consignment basis. The consignor estimated that the packaging costs for the books shipped were $ 85. A service fee paid by the consignor was $ 200. The consignee paid a freight charge of $ 30 for the books it received. In December, 60 books were sold per cash. Transfer of the amount due to the consignor will be made on December 31st. Both parties took a physical inventory and adjusted and closed their books at the end of the year, Requested : (1) Prepare an estimate for consignment sales that must be delivered by the consignment party by the end of December. (2) Prepare the journal entries for December in the consignee's books, assuming that (a) consignment profit is calculated separately and (b) consignment profit is not calculated separately. (3) Prepare the journal entries for December in the consignor's books, assuming that (a) consignment profit is calculated separately, and (b) consignment profit is not calculated separately.