Question

On April 25, 2017, Oriole ships 90 augers to Waterway Depot, a farm supply dealer in Nebraska, on consignment. By June 30, 2017, Waterway Depot has sold 60 of the consigned augers at the listed price of $1,300 per unit. Waterway Depot notifies Oriole of the sales, retains a 10% commission, and remits the cash due Oriole. Prepare the journal entries for Oriole and Waterway Depot for the consignment arrangement. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Entries for Oriole
Apr. 25, 2017Jun. 30, 2017
Jun. 30, 2017
	(To record payment received)
	(To record sales)
Entries for Waterway Depot
Apr. 25, 2017Jun. 30, 2017
	(To record consignment sales)
	(To record payment)
Apr. 25, 2017Jun. 30, 2017

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Answer 1

Answer Oriole ships Date Apr, 25 2017 Credit Debit $117,000 General Journal Inventory on Consignment (90 x $1,300) Finished Good Inventory (To record the inventory on consignment) $117,000 Jun, 30 2017 $70,200 $7,800 Cash ($78,000 - $7,800) Commission ($78,000 x 10%) Sales Revenue (60 x $1,300) (To record payment received) $78,000 Debit Credit Waterway Depot Date General Journal Apr, 25 2017 Inventory (90 x $1,300) Liability (To record the sale on consignment) $117,000 $117,000 Jun, 30 2017 $78,000 Cash Sales Revenue (To record the payment received) $78,000 $39,000 Liability [(90-60) < $1,300] Inventory (To record Inventory liability) $39,000