Reference no: EM132519874

SONY sent on consignment to Yared Electronics 100 TV set @ ETB 1500 on 1st Jan 2020 to be sold on his account and at his risk for 10% commission. SONY incurred ETB 3,000 expenses on dispatching the goods to Yared Electronics. On Jan 10, 2020 SONY received a bill for ETB. 20, 000 for a month from Yared Electronics. On March 31, 2020 Yared Electronics sent on account sales disclosing that all TVs have been sold for ETB 2 500 each. The account sales also disclose that Yared Electronics has incurred unloading expenses ETB 600 and selling expenses ETB 900. He sends a draft for the net amount due.

You are required to:

Question a) Prepare the account sales; and

Question b) Enter the transactions in the books of both the parties.