Wildhorse Corporation shipped $18,400 of merchandise on consignment to Crane Company. Wildhorse paid freight costs of $2,000. Crane Company paid $540 for local advertising, which is reimbursable from Wildhorse. By year-end, 63% of the merchandise had bee sold for $21,200. Crane notified Wildhorse, retained a 9% commission, and remitted the cash due to Wildhorse. Prepare Wildhorse's journal entry when the cash is received. (Credit account titles are automatically indented when 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. List all debit entries before credi entries.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Dinesh Bhai 

Wildhorse Corporation shipped $18,400 of merchandise on consignment to Crane Company. Wildhorse paid freight costs of $2,000.
Crane Company paid $540 for local advertising, which is reimbursable from Wildhorse. By year-end, 63% of the merchandise had been
sold for $21,200. Crane notified Wildhorse, retained a 9% commission, and remitted the cash due to Wildhorse.
Prepare Wildhorse's journal entry when the cash is received. (Credit account titles are automatically indented when 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. List all debit entries before credit
entries.)
Account Titles and Explanation
(To record the cash remitted to Wildhorse.)
(To record the cost of inventory sold on consignment.)
Debit
Credit
[[
Transcribed Image Text:Wildhorse Corporation shipped $18,400 of merchandise on consignment to Crane Company. Wildhorse paid freight costs of $2,000. Crane Company paid $540 for local advertising, which is reimbursable from Wildhorse. By year-end, 63% of the merchandise had been sold for $21,200. Crane notified Wildhorse, retained a 9% commission, and remitted the cash due to Wildhorse. Prepare Wildhorse's journal entry when the cash is received. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) Account Titles and Explanation (To record the cash remitted to Wildhorse.) (To record the cost of inventory sold on consignment.) Debit Credit [[
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education