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Organic Fruit Co. ships a batch of apples costing $50,000 on consignment to Green Grocery Ltd. Organic Fruit Co. pays $4,000 of freight costs, and
Organic Fruit Co. ships a batch of apples costing $50,000 on consignment to Green Grocery Ltd. Organic Fruit Co. pays $4,000 of freight costs, and Green Grocery Ltd pays $800 for local advertising costs that are reimbursable from Organic Fruit Co. By the end of the period, Green Grocery Ltd. has sold 95% of the consigned apple for $60,000 cash. Green Grocery Ltd. notifies Organic Fruit Co. of the sales, retains a 10% commission, and remits the cash due to Organic Fruit Co. Required: Write all journal entries that Organic Fruit Co and Green Grocery Ltd. should make to re o record this transaction? (Please show your calculations if necessary) Please type your answers in the box below. Organic Fruit Co. ships a batch of apples costing $50,000 on consignment to Green Grocery Ltd. Organic Fruit Co. pays $4,000 of freight costs, and Green Grocery Ltd pays $800 for local advertising costs that are reimbursable from Organic Fruit Co. By the end of the period, Green Grocery Ltd. has sold 95% of the consigned apple for $60,000 cash. Green Grocery Ltd. notifies Organic Fruit Co. of the sales, retains a 10% commission, and remits the cash due to Organic Fruit Co. Required: Write all journal entries that Organic Fruit Co and Green Grocery Ltd. should make to re o record this transaction? (Please show your calculations if necessary) Please type your answers in the box below
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