Chapter 18, Problem 5P

To determine

Contract: It is a voluntary arrangement that is enforced by the law between two or more parties as a legal binding agreement.

Sales revenue: It is the overall income that is earned during the selling of goods and services after deducting returns. It is also known as Net sales revenue.

Cost of goods sold: It is the direct amount used for the production of goods and services. These costs may include the cost of materials and labor cost used in the production of goods and services.

Consignment: A consignment is the process of transfer of goods to another person or an agent.

Consignee: In the contract, the consignee is responsible for receipt of a shipment of product. Generally the consignee will be the same as the receiver.

Consignor: In the contract, who delivers the consignment to the consignee is the consignor. Responsibility of the products is with the consignor till the time consignee pays the full amount. In most of the cases the seller is the consignor.

(a)

To prepare: To prepare the journal entry for notes.

Given information: All the related information is provided in the question document.

To determine

(b)

To prepare: To prepare the journal entry sales.

Given information: All the related information is provided in the question document.

To determine

(c)

To prepare: To prepare the journal entries for sales.

Given information: All the related information is provided in the question document.

To determine

(d)

To prepare: To prepare the journal entries.

Given information: All the related information is provided in the question document.