Sandhill Manufacturing Inc. is a local manufacturing company. Rather than sell its product directly, Sandhill ships its finished goods inventory to CMR Retailing Ltd., which sells the product for Sandhill on consignment. In 2020, Sandhill ships $112,000 in merchandise to CMR. At the end of 2020, CMR has sold 65% of the merchandise for $75,500. CMR notifies Sandhill of the sales, retains a 20% commission, and remits the cash due to Sandhill.

Prepare all the necessary journal entries on the books of Sandhill Manufacturing to record the consignment transactions.

No.	Account Titles and Explanation	Debit	Credit
1.
	(To record shipped merchandise)
2.
	(To record year end sales entry)
3.
	(To record year-end cost of goods)

Prepare the journal entries on the books of CMR Retailing to record the consignment transactions.

No.	Account Titles and Explanation	Debit	Credit
1.
	(To record year-end sales entry)
2.
	(To record remittance to consignor)