Van Gogh Wholesale Corp. is a leading wholesaler of artworks in Canada, and Monet Stores Ltd. is a local artwork retailer chain in the Greater Toronto Area. In 2021, the following transaction occurred between Van Gogh Wholesale Corp. (consignor) and Monet Stores (consignee):

Van Gogh shipped merchandise with a cost of $ 48,000 to Monet on May 5, 2021. Van Gogh paid $ 5,000 for freight and Monet paid $ 4,000 for advertising. There was an agreement between Van Gogh and Monet that the advertising fees paid by Monet will be reimbursed by Van Gogh. By the end of the fourth quarter of 2021 (December 31, 2021), Monet advised Van Gogh that all the merchandise has been sold for $60,000, and forwarded the proceeds (net of a 15% commission and the outlay for advertising) to Van Gogh.

Instructions

a) Prepare all entries for Monet to account for this transaction and show your calculation work below the journal entries, wherever applicable.

b) Prepare all entries for Van Gogh to account for this transaction and show your calculation work below the journal entries, wherever applicable.