Vaughn Corporation shipped $18,400 of merchandise on consignment to Gooch Company. Vaughn paid freight costs of $2,000. GoochCompany paid $540 for local advertising, which is reimbursable from Vaughn. By year-end, 63% of the merchandise had been sold for$21,200. Gooch notified Vaughn, retained a 9% commission, and remitted the cash due to Vaughn.Prepare Vaughn's journal entry when the cash is received. (Round answers to O decimal places, e.g. 1,525. Credit account titlesare automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for theaccount titles and enter O for the amounts.)Account Titles and ExplanationDebitCreditCashCommission ExpenseAdvertising Expense(To record the cash remitted to Vaughn.)(To record the cost of inventory sold on consignment.)18752190854021200

Journal entry refers to the entries which record the transactions of the business into the books of…

Vaughn Corporation shipped $18,400 of merchandise on consignment to Gooch Company. Vaughn paid freight costs of $2,000. Gooch Company paid $540 for local advertising, which is reimbursable from Vaughn. By year-end, 63% of the merchandise had been sold for $21,200. Gooch notified Vaughn, retained a 9% commission, and remitted the cash due to Vaughn.

Vaughn Corporation shipped $18,400 of merchandise on consignment to Gooch Company. Vaughn paid freight costs of $2,000. Gooch Company paid $540 for local advertising, which is reimbursable from Vaughn. By year-end, 63% of the merchandise had been sold for $21,200. Gooch notified Vaughn, retained a 9% commission, and remitted the cash due to Vaughn.

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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