The following are transactions between Crane Corp, the consignor, and Blossom Stores Ltd, the consignee, for the month of June 2023. Crane uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Blossom to Crane and a net payment is made. The agreement stipulates that Blossom is to receive a 20% (of sales) commission and a 7% (of sales) rebate to offset its advertising expenses. June 1 June 5 June 30 June 30 Crane ships merchandise costing $475,000 on consignment to Blossom Stores. Crane pays the freight of $4,500 for the above shipment of June 1. Summary entry for the month of June: Blossom sells half of the merchandise for $680,000 cash Blossom notifies Crane that 50% of the merchandise has been sold for $680,000 and remits a cheque for the amount due under the consignment agreement. Crane records the receipt of the cheque from Blossom,

The following are transactions between Crane Corp, the consignor, and Blossom Stores Ltd, the consignee, for the month of June 2023. Crane uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Blossom to Crane and a net payment is made. The agreement stipulates that Blossom is to receive a 20% (of sales) commission and a 7% (of sales) rebate to offset its advertising expenses. June 1 June 5 June 30 June 30 Crane ships merchandise costing $475,000 on consignment to Blossom Stores. Crane pays the freight of $4,500 for the above shipment of June 1. Summary entry for the month of June: Blossom sells half of the merchandise for $680,000 cash Blossom notifies Crane that 50% of the merchandise has been sold for $680,000 and remits a cheque for the amount due under the consignment agreement. Crane records the receipt of the cheque from Blossom,

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....

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