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.)
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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dinesh Bhai
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
[[
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