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ingey Industries sells merchandise on a consignment basis to dealers. The selling price of the merchandise averages 25% above cost of merchandise. The dealer is
ingey Industries sells merchandise on a consignment basis to dealers. The selling price of the merchandise averages 25% above cost of merchandise. 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 2013.
Manufacturing cost of goods shipped on consignment | $250,000 |
Sales price of merchandise sold by dealers | 220,000 |
Payments made by dealers after deducting commission | 139,000 |
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Instructions:
- Prepare summary entries on the books of the consignor for these consignment sales transactions.
- Prepare summary entries on the books of the dealer consignee, assuming there is only one dealer involved.
- Prepare the parts of Tingey Industries' financial statements at December 31, 2013, that relate to these consignment sales.
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