Answered: Martinez Corporation shipped $21,900 of…

Name: Martinez Corporation shipped $21,900 of merchandise on consignment to
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Martinez Corporation shipped $21,900 of merchandise on consignment to Gooch Company. Martinez paid freight costs of $2,100. Gooch Company paid $550 for local advertising, which is reimbursable from Martinez. By year-end, 65% of the merchandise had be

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Martinez Corporation shipped $21,900 of merchandise on consignment to Gooch Company. Martinez paid freight costs of $2,100. Gooch Company paid $550 for local advertising, which is reimbursable from Martinez. By year-end, 65% of the merchandise had been sold for $21,900. Gooch notified Martinez, retained a 10% commission, and remitted the cash due to Martinez.

Prepare Martinez’s journal entry when the cash is received. (Round answers to 0 decimal places, e.g. 1,525. 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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit




(To record the cash remitted to Martinez.)


(To record the cost of inventory sold on consignment.)

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