CCB Industries sells merchandise on a consignment basis to dealers. Shipping cost are chargeable to CCB, although in some cases the dealer pays them. The selling price of the merchandise averages 25% above cost of merchandise exclusive of freight. The dealer is paid a 10% commission on the sales price for all sales made. All dealer sales are made on a cash basis. the following consignment sales activities occurred during 2012:

Manufacturing cost of goods shipped on consignment.... 500,000

Freight cost incurred:

Paid by CCB:30,000

Paid by dealer:10,000 =40,000(30,000+10,000)

Sales price of merchandise sold by dealer...420,000

Payment made by dealers after deducting commission and freight costs......278,000

Instructions:

1. Account sales report

2. Determine the consignor's profit on consignment

3. Prepare the entries on the books of the consignor and the books of the consignee relative to the given consignment transaction assuming: consignment profits are calculated separately.