The following are transactions between Blossom Corp., the consignor, and Cullumber Stores Ltd., the consignee,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
The following are transactions between Blossom Corp., the consignor, and Cullumber Stores Ltd., the consignee, for the month of June 2023. Blossom 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 Cullumber to Blossom and a net payment is made. The agreement stipulates that Cullumber is to receive a 15% (of sales) commission and a 8% (of sales) rebate to offset its advertising expenses. June 1 Blossom ships merchandise costing $461,000 on consignment to Cullumber Stores. June 5 Blossom pays the freight of $5,500 for the above shipment of June 1. June 30 Summary entry for the month of June: Cullumber sells half of the merchandise for $650,000 cash. June 30 Cullumber notifies Blossom that 50% of the merchandise has been sold for $650,000 and remits a cheque for the amount due under the consignment agreement. Blossom records the receipt of the cheque from Cullumber. (a) Your answer is correct. Prepare the journal entries necessary on the books of Cullumber Stores. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
The following are transactions between Blossom Corp., the consignor, and Cullumber Stores Ltd., the consignee, for the month of June 2023. Blossom 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 Cullumber to Blossom and a net payment is made. The agreement stipulates that Cullumber is to receive a 15% (of sales) commission and a 8% (of sales) rebate to offset its advertising expenses. June 1 Blossom ships merchandise costing $461,000 on consignment to Cullumber Stores. June 5 Blossom pays the freight of $5,500 for the above shipment of June 1. June 30 Summary entry for the month of June: Cullumber sells half of the merchandise for $650,000 cash. June 30 Cullumber notifies Blossom that 50% of the merchandise has been sold for $650,000 and remits a cheque for the amount due under the consignment agreement. Blossom records the receipt of the cheque from Cullumber. (a) Your answer is correct. Prepare the journal entries necessary on the books of Cullumber Stores. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) 