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The following are transactions between Crane Corp, the consignor, and Blossom Stores Ltd, the consignee, for the month of June 2023. Crane uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Blossom to Crane and a net payment is made. The agreement stipulates that Blossom is to receive a 20% (of sales) commission and a 7% (of sales) rebate to offset its advertising expenses. June 1 June 5 June 30 June 30 Crane ships merchandise costing $475,000 on consignment to Blossom Stores. Crane pays the freight of $4,500 for the above shipment of June 1. Summary entry for the month of June: Blossom sells half of the merchandise for $680,000 cash Blossom notifies Crane that 50% of the merchandise has been sold for $680,000 and remits a cheque for the amount due under the consignment agreement. Crane records the receipt of the cheque from Blossom.

The following are transactions between Crane Corp, the consignor, and Blossom Stores Ltd, the consignee, for the month of June 2023. Crane uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Blossom to Crane and a net payment is made. The agreement stipulates that Blossom is to receive a 20% (of sales) commission and a 7% (of sales) rebate to offset its advertising expenses. June 1 June 5 June 30 June 30 Crane ships merchandise costing $475,000 on consignment to Blossom Stores. Crane pays the freight of $4,500 for the above shipment of June 1. Summary entry for the month of June: Blossom sells half of the merchandise for $680,000 cash Blossom notifies Crane that 50% of the merchandise has been sold for $680,000 and remits a cheque for the amount due under the consignment agreement. Crane records the receipt of the cheque from Blossom.

FINANCIAL ACCOUNTING
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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The following are transactions between Crane Corp, the consignor, and Blossom Stores Ltd, the consignee, for the month of June 2023. Crane uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Blossom to Crane and a net payment is made. The agreement stipulates that Blossom isto receive a 20% (of sales) commission and a 7% (of sales) rebate to offset its advertising expenses. June 1 June June 30 June 30 5 Crane ships merchandise costing $475,000 on consignment to Blossom Stores. Crane pays the freight of $4,500 for the above shipment of June 1. Summary entry for the month of June: Blossom sells half of the merchandise for $680,000 cash Blossom notifies Crane that 50% of the merchandise has been sold for $680,000 and remits a cheque for the amount due under the consignment agreement. Crane records the receipt of the cheque from Blossom.
Transcribed Image Text:The following are transactions between Crane Corp, the consignor, and Blossom Stores Ltd, the consignee, for the month of June 2023. Crane uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Blossom to Crane and a net payment is made. The agreement stipulates that Blossom isto receive a 20% (of sales) commission and a 7% (of sales) rebate to offset its advertising expenses. June 1 June June 30 June 30 5 Crane ships merchandise costing $475,000 on consignment to Blossom Stores. Crane pays the freight of $4,500 for the above shipment of June 1. Summary entry for the month of June: Blossom sells half of the merchandise for $680,000 cash Blossom notifies Crane that 50% of the merchandise has been sold for $680,000 and remits a cheque for the amount due under the consignment agreement. Crane records the receipt of the cheque from Blossom.
(b) Your answer is partially correct. Prepare the journal entries necessary on the books of Blossom Stores. (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 Record journal entries in the order presented in the problem. List all debit entries before credit entries.) ONTROLEIL ES ENIETEN, LAUTAN HAT. I city chov ------ Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Account Titles and Explanation Date June 1 June 5 V June 30 v June 30 No Entry No Entry Accounts Receivable. Cash Cash Accounts Payable (To record summary entry) Accounts Payable Advertising Expense Cash (To record payment to consignor). Debit 0 Credit
Transcribed Image Text:(b) Your answer is partially correct. Prepare the journal entries necessary on the books of Blossom Stores. (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 Record journal entries in the order presented in the problem. List all debit entries before credit entries.) ONTROLEIL ES ENIETEN, LAUTAN HAT. I city chov ------ Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Account Titles and Explanation Date June 1 June 5 V June 30 v June 30 No Entry No Entry Accounts Receivable. Cash Cash Accounts Payable (To record summary entry) Accounts Payable Advertising Expense Cash (To record payment to consignor). Debit 0 Credit
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