Consignment accounting and summary entries

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Reference no: EM1365224

Tingey Industries sells merchandise on a consignment basis to dealers. The selling price of the merchandise averages 25% above cost of merchandise. The dealer is paid a 10% commission on the sales price for all sales made. All dealer sales are made on a cash basis. The following consignment sales activities occurred during 2013.

Manufacturing cost of goods shipped on consignment.......$250,000
Sales price of merchandise sold by dealers.......$220,000
Payments made by dealers after deducting commission... $139,000.

1. Prepare summary entries on the books of the consignor for these consignment sales transactions.

2. Prepare summary entries on the books of the dealer consignee, assuming there is only one dealer involved.

3. Prepare the parts of Tingey Industries' financial statements at December 31, 2013, that relate to these consignment sales.

Reference no: EM1365224

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