Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wildhorse Corporation shipped $20,900 of merchandise on consignment to Gooch Company. Wildhorse paid freight costs of $2,000. Gooch Company paid $460 for local advertising, which
Wildhorse Corporation shipped $20,900 of merchandise on consignment to Gooch Company. Wildhorse paid freight costs of $2,000. Gooch Company paid $460 for local advertising, which is reimbursable from Wildhorse. By year-end, 54% of the merchandise had been sold for $19,500. Gooch notified Wildhorse, retained a 9% commission, and remitted the cash due to Wildhorse. Prepare Wildhorse's journal entry when the cash is received. (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 O for the amounts.) Account Titles and Explanation Debit Credit (To record the cash remitted to Wildhorse.) (To record the cost of inventory sold on consignment.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started