Blossom Manufacturing Inc. shipped finished goods inventory with a total cost of $56,700 to Wildhorse Retailing Ltd. on May 1. The agreement between the two companies was that Wildhorse was to sell the product on consignment for Blossom Manufacturing. Blossom paid $4,800 in shipping costs in order to ship the merchandise. Wildhorse paid a local newspaper $1,500 for advertising costs (which Blossom promised to reimburse). At September 30, the end of the accounting year for both companies, Wildhorse had sold 75% of the merchandise for total sales of $60,000. Wildhorse notified Blossom of the sales, retained a 20% commission, and remitted the cash due to Blossom. (a) Your Answer Correct Answer (Used) Prepare the journal entries required by the above transactions on the books of Blossom Manufacturing. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Use 'Revenue from Consignment Sales' for the entry.) No. Account Titles and Explanation Debit Credit 1. Inventory on Consignment Inventory (To record the shipment of merchandise to FFA on consignment.) 2. Inventory on Consignment Cash (To record the payment of shipping costs.) 3. Cash Advertising Expense Commission Expense Revenue from Consignment Sales (To record notification of consignment goods sold and receipt of cash remittance.) 4. Cost of Goods Sold Inventory on Consignment (To record cost of goods sold and adjust inventory.) 56,700 4,800 46,500 1,500 12,000 46,125 56,700 4,800 60,000 46,125 Prepare the journal entries required by the above transactions on the books of Wildhorse Retailing. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Use 'Revenue from Consignment Sales' for the entry.) No. Account Titles and Explanation 1. 2. (To record payment of advertising costs, reimbursable from consignor.) 3. (To record sales of consigned merchandise.) (To record remittance of cash to consignor less advertising reimbursement and consignment commission.) Debit Credit