A company sells merchandise on a consignment basis to dealers. The selling price of the merchandise averages 25% above cost of merchandise. The dealer is paid a 10% commission on the sales price for all sales made.
The following info is given:
Manufacturing cost of goods shipped on consignment_______________$250,000
Sales price of merchandise sold by dealers________________________$220,000
Payments made by dealers after deducting commission_____________$139,000
Prepare summary entries on the books of the consignor for these consignment sales transactions prepare summary entries on the books of the consignee for these consignment sales transactions. Prepare the parts of the company financial statements that relate to these consignment sales.