The Wilson Publishing Company ships 4-volume sets of Management Encyclopedia to book dealers on consignment. The sets are to be sold at an advertised price of P4,950. The estimated cost per set is P2,500. Consignees are allowed a commission of 30% of the sales price and are to be reimbursed for the cartage relating to consigned goods. On December 8, 2009, 100 sets were sent to the Cora Book Store on consignment. The consignor estimated that packing charges of P850 were related to the books shipped. The shipment cost paid by the consignor was P2,000. The consignee paid P300 for the cartage on sets received. Sixty sets were sold on December 31. Both consignee and consignor take physical inventories and adjust and close their books at year end. Required: Prepare an account sales to be submitted by the consignee at the end of December. Give the journal entries for December on the books of the consignee Give the journal entries for December on the books of the consignor
The Wilson Publishing Company ships 4-volume sets of Management Encyclopedia to book dealers on consignment. The sets are to be sold at an advertised price of P4,950. The estimated cost per set is P2,500. Consignees are allowed a commission of 30% of the sales price and are to be reimbursed for the cartage relating to consigned goods. On December 8, 2009, 100 sets were sent to the Cora Book Store on consignment. The consignor estimated that packing charges of P850 were related to the books shipped. The shipment cost paid by the consignor was P2,000. The consignee paid P300 for the cartage on sets received. Sixty sets were sold on December 31. Both consignee and consignor take physical inventories and adjust and close their books at year end. Required: Prepare an account sales to be submitted by the consignee at the end of December. Give the journal entries for December on the books of the consignee Give the journal entries for December on the books of the consignor
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Wilson Publishing Company ships 4-volume sets of Management Encyclopedia to book dealers on consignment. The sets are to be sold at an advertised price of P4,950. The estimated cost per set is P2,500. Consignees are allowed a commission of 30% of the sales price and are to be reimbursed for the cartage relating to consigned goods.
On December 8, 2009, 100 sets were sent to the Cora Book Store on consignment. The consignor estimated that packing charges of P850 were related to the books shipped. The shipment cost paid by the consignor was P2,000. The consignee paid P300 for the cartage on sets received. Sixty sets were sold on December 31. Both consignee and consignor take physical inventories and adjust and close their books at year end.
Required:
- Prepare an account sales to be submitted by the consignee at the end of December.
- Give the
journal entries for December on the books of the consignee - Give the journal entries for December on the books of the consignor
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