Cullumber Manufcturing Inc, is a local manufacturing company. Rather than sell its product directly, Cullumber ships...

 

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Cullumber Manufcturing Inc, is a local manufacturing company. Rather than sell its product directly, Cullumber ships its finished goods inventory to CMR Retailing Ltd., who sells the product for Cullumber on consignment. During 2020, Cullumber ships $101,500 in merchandise to CMR. At the end of 2020, CMR has sold 65% of the merchandise for $73,500. CMR notifies Cullumber of the sales, retains a 20% commission, and remits the cash due to Cullumber. Prepare all the necessary journal entries on the books of Cullumber Manufacturing to record the consignment transactions. (Credit account fitles are automatically indented when the amount is entered. De not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation: Debit Credit 1. (To record shipped merchandise) 2. (To record year end sales entry) 3. (To record year end cost of goods) Prepare the journal entries on the books of CMR Retailing to record the consignment +transactions No. Account Titles and Explanation Debit Credit 1. (To record year end sales entry) 2. (To record remittance to consignor) MacBook Air Cullumber Manufcturing Inc, is a local manufacturing company. Rather than sell its product directly, Cullumber ships its finished goods inventory to CMR Retailing Ltd., who sells the product for Cullumber on consignment. During 2020, Cullumber ships $101,500 in merchandise to CMR. At the end of 2020, CMR has sold 65% of the merchandise for $73,500. CMR notifies Cullumber of the sales, retains a 20% commission, and remits the cash due to Cullumber. Prepare all the necessary journal entries on the books of Cullumber Manufacturing to record the consignment transactions. (Credit account fitles are automatically indented when the amount is entered. De not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation: Debit Credit 1. (To record shipped merchandise) 2. (To record year end sales entry) 3. (To record year end cost of goods) Prepare the journal entries on the books of CMR Retailing to record the consignment +transactions No. Account Titles and Explanation Debit Credit 1. (To record year end sales entry) 2. (To record remittance to consignor) MacBook Air

Answer rating: 100% (QA)

Working Notes Commission of CMR Retailing 20 of Sales 20 73500 14700 Cash remitted to ... View the full answer