PART A

Barik Medical Corp. sells medical equipment and supplies. For those existing clients who no longer have a use for medical equipment that they own or outgrow, Barik will take the medical equipment and sell it on their behalf. Most of this equipment requires refurbishment. The cost of the refurbishment work is deducted from the selling price $($along with any advertising costs$)$ that is paid to the client, who is effectively the consignor and Barik is the consignee. Barik's policy is to keep $25\%$ of the selling price.

Mr$.$ Small brings in a wheelchair that his son has outgrown so that Barik can sell it on his behalf. Barik estimates that it can sell the wheelchair for $$2,000$ but it requires $$300$ worth of refurbishment work.

Instructions

Identify the transactions that have occurred and prepare any necessary journal entries for Barik Medical Corp. assuming that the equipment was sold by month end at the estimated selling price and an incurred advertising cost of $$50.$