Red Fish Corporation shipped $20,000 of merchandise on consignment to Blue Fish Corporation. Red Fish paid freight costs of $2,000. Blue Fish paid $500 for local advertising, which is reimbursable from Red Fish. By year end, 60% of the merchandise had been sold for $21,500. Blue Fish notified Red Fish, retained a 10% commission, and remitted the cash due to Red Fish.

Required

1.Prepare Red Fish's journal entry when cash is received.