Cullumber Corporation shipped $18.500 of merchandise on consignment to Crane Company, Cullumber paid freight costs of $2,000. Crane Company paid $550 for local advertising, which is reimbursable from Cullumber. By year-end, 57% of the merchandise had been sold for $21,800. Crane notified Cullumber, retained a 9% commission, and remitted the cash due to Cullumber. Prepare Cullumber'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 Debit Credit
Cullumber Corporation shipped $18.500 of merchandise on consignment to Crane Company, Cullumber paid freight costs of $2,000. Crane Company paid $550 for local advertising, which is reimbursable from Cullumber. By year-end, 57% of the merchandise had been sold for $21,800. Crane notified Cullumber, retained a 9% commission, and remitted the cash due to Cullumber. Prepare Cullumber'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 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gadubhai
Transcribed Image Text:Cullumber Corporation shipped $18,500 of merchandise on consignment to Crane Company. Cullumber paid freight costs of $2,000.
Crane Company paid $550 for local advertising, which is reimbursable from Cullumber. By year-end, 57% of the merchandise had been
sold for $21,800. Crane notified Cullumber, retained a 9% commission, and remitted the cash due to Cullumber.
Prepare Cullumber'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 Cullumber.)
(To record the cost of inventory sold on consignment.)
Debit
Credit
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