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On April 16, 2010, the Winger Company shipped 10 tractors to the Yuma Farm Supply Company on consignment. Each tractor cost $30,000 and the Winger Company incurred cash shipment costs of $100 per tractor. The consignment agreement required payment to Winger at year end. On December 31, 2010 the consignee reported that it had sold six tractors for $36,000 each. The consignee paid the Winger Company the amount required under the agreement, after deducting the commission of 5% and advertising costs of $2,000 incurred by the consignee.
Required:Prepare the 2010 journal entries for the Yuma Farm Supply Company.
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