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Question - In 2020, the following transaction occurred between Red Wings. (consignor) and Maple Leafs (consignee): On March 2, 2020 Red Wings shipped merchandise costing $52,000 to Maple Leafs. Red Wings paid $4,000 for freight and Maple Leafs paid $ 3,000 for advertising (to be reimbursed by Red Wings). By the end of the third quarter of 2020 (September 30, 2020). Maple Leafs advised Red Wings that all the merchandise has been sold for $ 70,000, and forwarded the proceeds (net of a 15% commission and the outlay for advertising) to Red Wings.
Required -
a) Prepare the September 30th 2020 journal entry(ies) only for Maple Leafs to account for this transaction.
b) Prepare the September 30th 2020 journal entry(ies) only for Red Wings to account for this transaction.
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