Prepare journal entries to record revenue and cost of goods

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Problem 1: Alpha Corporation shipped $30,000 of merchandise on consignment to Beta Company. Alpha paid freight costs of $2,000. Beta paid $800 for local advertising, which is reimbursable from Alpha. By year-end, 70% of the merchandise had been sold for $40,000. Beta notified Alpha, retained a 10% commission, and remitted cash due to Alpha. Prepare the journal entries to record revenue and cost of goods sold by Alpha, when cash is received from Beta. Round to the nearest cent.

Reference no: EM132972525

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