Northwestern Company is a consignee company which sells goods for other companies. During 2017, they received goods from St. Cloud Company costing that company $400,000. They spent $12,000 on advertising and $1,000 on freight both to be reimbursed by St. Cloud and were allowed a commission of 15% of the selling price of $700,000 for goods sold in 2017.

Record on the books of Northwestern all necessary entries pertaining to the receipt of the inventory, the advertising and freight, the cash sales of $700,000, and the remittance to St. Cloud.

Dr. Cr.