On July 2, Clippers Corp. ships merchandise costing $460,000 on consignment to Dolphin Stores. Clippers pay the freight of $10,000. Upon sale, Dolphin Stores will receive a 12% commission and a 6% allowance to offset its advertising expenses. At the end of the month, Dolphin notifies Clippers that 50% of the merchandise has been sold for $560,000. The net amount of the consignment sales was received by Clippers Corp. on August 31.

Instructions

Show all calculations and round all figures to the whole dollars:

1. Record the journal entries required by Clippers Corp. to account for this consignment on July 2; July 31 and August 31
2. Record the journal entries required by Dolphin Stores to account for this consignment on July 2; July 31 and August 31

Answer rating: 100% (QA)

Journal Entries In the Books of Cardinal Corp Sr Particulars Debit Credit No Consignment to ... View the full answer