CONSIGNMENT ARRANGEMENT Field Mouse Corp. consigns tractors to Plow-It-Up, Inc. Number of tractors con
Posted: Thu May 19, 2022 1:48 pm
CONSIGNMENT ARRANGEMENT
Field Mouse Corp. consigns tractors to Plow-It-Up, Inc.
Number of tractors consigned
10
Cost of each tractor
20,000
Selling price of each tractor
30,000
Commission charged by Plow-It-Up
5%
Local
advertising costs paid by Plow-It-Up to be
reimbursed by Field Mouse Corp.
1,000
Number of tractors sold
5
INSTRUCTIONS: Prepare the journal entries Field
Mouse will make upon receiving the sales
report and payment from Plow-It-Up on December 31, 2021.
Field Mouse Corp. consigns tractors to Plow-It-Up, Inc.
Number of tractors consigned
10
Cost of each tractor
20,000
Selling price of each tractor
30,000
Commission charged by Plow-It-Up
5%
Local
advertising costs paid by Plow-It-Up to be
reimbursed by Field Mouse Corp.
1,000
Number of tractors sold
5
INSTRUCTIONS: Prepare the journal entries Field
Mouse will make upon receiving the sales
report and payment from Plow-It-Up on December 31, 2021.