Question 11

Blossom Manufacturing Inc. shipped finished goods inventory with a total cost of $45,000 to FFA Retailing Ltd. on May 1. The agreement between the two companies was that FFA was to sell the product on consignment for Blossom Manufacturing. Blossom incurred $2,600 in shipping costs in order to ship the merchandise. FFA paid a local newspaper $1,500 for advertising costs (which Blossom promised to reimburse). At September 30, the end of the accounting year for both companies, FFA had sold 75% of the merchandise for total sales of $60,000. FFA notified Blossom of the sales, retained a 20% commission, and remitted the cash due to Blossom.

Prepare the journal entries required by the above transactions on the books of FFA Retailing. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the 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.)

Prepare the journal entries required by the above transactions on the books of FFA Retailing. (Round a the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for No. Account Titles and Explanation Debit Credit 1. Inventory on Consignment 45,000 Inventory 45,000 (To record payment of advertising.) (To record year end sales entry.) (To record remittance to consignor.)