Carla Vista Manufacturing Inc. shipped finished goods inventory with a total cost of $55,700 to Vaughn Retailing Ltd. on May 1. The agreement between the two companies was that Vaughn was to sell the product on consignment for Carla Vista Manufacturing Carla Vista paid $4,900 in shipping costs in order to ship the merchandise. Vaughn paid a local newspaper $1,700 for advertising costs (which Carla Vista promised to reimburse). At September 30, the end of the accounting year for both companies, Vaughn had sold 75% of the merchandise for total sales of $61,000. Vaughn notified Carla Vista of the sales, retained a 20% commission, and remitted the cash due to Carla Vista (a) Prepare the journal entries required by the above transactions on the books of Carla Vista Manufacturing (Round answers to O decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Use 'Revenue from Consignment Sales' for the entry) No. Account Titles and Explanation Debit Credit

Carla Vista Manufacturing Inc. shipped finished goods inventory with a total cost of $55,700 to Vaughn Retailing Ltd. on May 1. The agreement between the two companies was that Vaughn was to sell the product on consignment for Carla Vista Manufacturing Carla Vista paid $4,900 in shipping costs in order to ship the merchandise. Vaughn paid a local newspaper $1,700 for advertising costs (which Carla Vista promised to reimburse). At September 30, the end of the accounting year for both companies, Vaughn had sold 75% of the merchandise for total sales of $61,000. Vaughn notified Carla Vista of the sales, retained a 20% commission, and remitted the cash due to Carla Vista (a) Prepare the journal entries required by the above transactions on the books of Carla Vista Manufacturing (Round answers to O decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Use 'Revenue from Consignment Sales' for the entry) No. Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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