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Teal Corporation shipped $20,700 of merchandise on consignment to Gooch Company. Teal paid freight costs of $2,200. Gooch Company paid $550 for local advertising, which is reimbursable from Teal. By year-end, 57% of the merchandise had been sold for $20,600. Gooch notified Teal, retained a 10% commission, and remitted the cash due to Teal.
Problem 1: Prepare Teal's journal entry when the cash is received. (Round answers to 0 decimal places, e.g. 1,525. Credit account titles are automatically indented when 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.)
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