Concord Corporation shipped $28,000 of merchandise on consignment to Sheridan Company. Concord paid freight costs of $1,800. Sheridan Company paid $800 for local advertising, which is reimbursable from Concord. By year end, 60% of the merchandise had been sold for $21,000. Sheridan notified Concord, retained a 10% commission, and remitted the cash due to Concord.

Account Titles and Explanation Debit Credit (To record revenue) (To record cost of goods sold)