Jansen Corporation shipped $20,000 of merchandise on consignment to Gooch Company. Jansen paid freight costs of $2,000. Gooch Company paid $500 for local advertising, which is reimbursable from Jansen. By year-end, 60% of the merchandise had been sold for $21,500. Gooch notified Jansen, retained a 10% commission, and remitted the cash due to Jansen.

1. Compute the inventory value of the units unsold in the hands of the cosignee (Gooch).

2. Compute the profit for the cosignor (Jansen) for the units sold.

3. Provide Journal entries for cosignor (Jansen) and cosignee (Gooch), respectively, to record the notification of sales and remittance of amount due to cosignor.

PLEASE SHOW WORK