Crane Corporation shipped $19,000 of merchandise on consignment to Ivanhoe Company. Crane paid freight costs of $2,000. Ivanhoe Company paid $470 for local advertising, which is reimbursable from Crane. By year-end, 66% of the merchandise had been sold for $21,600. Ivanhoe notified Crane, retained a 11% commission, and remitted the cash due to Crane. Prepare Crane'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. List all debit entries before credit entries.) Account Titles and Explanation (To record the cash remitted to Crane.) (To record the cost of inventory sold on consignment.) Debit Credit
Crane Corporation shipped $19,000 of merchandise on consignment to Ivanhoe Company. Crane paid freight costs of $2,000. Ivanhoe Company paid $470 for local advertising, which is reimbursable from Crane. By year-end, 66% of the merchandise had been sold for $21,600. Ivanhoe notified Crane, retained a 11% commission, and remitted the cash due to Crane. Prepare Crane'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. List all debit entries before credit entries.) Account Titles and Explanation (To record the cash remitted to Crane.) (To record the cost of inventory sold on consignment.) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Crane Corporation shipped $19,000 of merchandise on consignment to Ivanhoe Company. Crane paid freight costs of $2,000. Ivanhoe
Company paid $470 for local advertising, which is reimbursable from Crane. By year-end, 66% of the merchandise had been sold for
$21,600. Ivanhoe notified Crane, retained a 11% commission, and remitted the cash due to Crane.
Prepare Crane'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. List all debit entries before credit
entries.)
Account Titles and Explanation
(To record the cash remitted to Crane.)
(To record the cost of inventory sold on consignment.)
Debit
Credit
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