Question
Pronghorn Corporation shipped $18,300 of merchandise on consignment to Gooch Company. Pronghorn paid freight costs of $2,100. Gooch Company paid $530 for local advertising, which
Pronghorn Corporation shipped $18,300 of merchandise on consignment to Gooch Company. Pronghorn paid freight costs of $2,100. Gooch Company paid $530 for local advertising, which is reimbursable from Pronghorn. By year-end, 58% of the merchandise had been sold for $22,500. Gooch notified Pronghorn, retained a 10% commission, and remitted the cash due to Pronghorn. Prepare Pronghorns journal entry when the cash is received. (Round answers to 0 decimal places, e.g. 1,525. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Cash Advertising Expense Commission Expense Revenue from Consignment Sales (To record the cash remitted to Pronghorn.) Cost of Goods Sold Inventory on Consignment (To record the cost of inventory sold on consignment.)
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