Prepare Indigo’s journal entry when cash is received.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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Question
Indigo Corporation shipped $25,000 of merchandise on consignment to Sandhill Company. Indigo paid freight costs of $1,900. Sandhill Company paid $400 for local advertising, which is reimbursable from Indigo. By year end, 60% of the merchandise had been sold for $20,500. Sandhill notified Indigo, retained a 10% commission, and remitted the cash due to Indigo.
Prepare Indigo’sjournal entry when cash is received. (Credit account titles are automatically indented when the 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.)
Prepare Indigo’s
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|
enter an account title to record revenue
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record revenue
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record revenue
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record revenue
|
enter a debit amount
|
enter a credit amount
|
(To record revenue)
|
||
enter an account title to record cost of goods sold
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record cost of goods sold
|
enter a debit amount
|
enter a credit amount
|
(To record cost of goods sold)
|
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