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On July 2, Packers Corp. ships merchandise costing $ 460,000 on consignment to Vikings Stores. Packers pay the freight of $ 10,000. Upon sale, Vikings Stores will receive a 12% commission and a 6% allowance to offset its advertising expenses. On July 31, Vikings notify Packers that 50% of the merchandise has been sold for $ 560,000. Vikings forward the net proceeds for the July sales to Packers on August 31. Instructions
Problem 1: Record the entries recording this consignment required by the two companies on: July 2, July 31, and August 31
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