PREPARE ENTRIES NECESSARY FOR REN STORES...The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd the consignee, for the month of June
Wang uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of
each month, sales are reported by Ren to and a net payment is made. The agreement stipulates that Ren is to receive a of
sales commission and a of sales rebate to offset its advertising expenses.
June Wang ships merchandise costing $ on consignment to Ren Stores.
June Wang pays the freight of $ for the above shipment of June
June Summary entry for the month of June: Ren sells half of the merchandise for $ cash.
June Ren notifies Wang that of the merchandise has been sold for $ and remits a cheque for the amount due
under the consignment agreement. Wang records the receipt of the cheque from Ren.
