The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd., the consignee, for the month of June 2023. Wang 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 Ren to Wang and a net payment is made. The agreement stipulates that Ren is to receive a 15% (of sales) commission and a 6% (of sales) rebate to offset its advertising expenses. June 1 Wang ships merchandise costing $455,000 on consignment to Ren Stores. Wang pays the freight of $5,000 for the above shipment of June 1. Summary entry for the month of June: Ren sells half of the merchandise for $600,000 cash. Ren notifies Wang that 50% of the merchandise has been sold for $600,000 and remits a cheque for the amount due under the consignment agreement. Wang records the receipt of the cheque from Ren. June 5 June 30 June 30 (a) Prepare the journal entries necessary on the books of Wang. (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 O for the amounts. Record journal

The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd., the consignee, for the month of June 2023. Wang 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 Ren to Wang and a net payment is made. The agreement stipulates that Ren is to receive a 15% (of sales) commission and a 6% (of sales) rebate to offset its advertising expenses. June 1 Wang ships merchandise costing $455,000 on consignment to Ren Stores. Wang pays the freight of $5,000 for the above shipment of June 1. Summary entry for the month of June: Ren sells half of the merchandise for $600,000 cash. Ren notifies Wang that 50% of the merchandise has been sold for $600,000 and remits a cheque for the amount due under the consignment agreement. Wang records the receipt of the cheque from Ren. June 5 June 30 June 30 (a) Prepare the journal entries necessary on the books of Wang. (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 O for the amounts. Record journal

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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