1. 2. 3. Advertising Expense Cash (To record payment of advertising costs, reimbursable from consignor.) Inventory on Consignment (To record sales of consigned merchandise.) (To record remittance of cash to consignor less advertising reimbursement and consignment commission.) N WE SUPPORT

1. Adverthine Expense Crsh (To record payment of adkertising costs, reimbursable from consignoc) 2. Triventorvon Consipnment (To record sales of comigned merchandise.) 3. (To record remittance of cash to consignor less advertising reimbursement and consignment commission.) Carla Vista Manufacturing Inc shipged finished goods imventory with a totaicost of 549,900 to Pharoah Retailing Ltd. on May 1 . The agreement between the two compantes was that Pharoah was to sell the product on consignment for Carla Vista Manufacturing Carla Vista paid $5,400 in shipping costs in order to ship the merchandise. Pharoah paid a local newspaper $2,500 for advertising costs (which Carla Vista promised to reimburse). At September 30 , the end of the accounting year for both companies, Pharoah had sold 75% of the merchandise for total sales of $66,900. Pharoah notifed Carta Vista of the sales, retained a 20% commission, and remitted the cash due to Carla Vista