Star Inc. ships merchandise on consignment to The Party Place, a retailer on February 13, 2020. The cost of the merchandise is $26,000, and Star Inc. pays the freight cost of $1,900 to ship the goods to the retailer. On November 30, 2020 (The Party Place accounting year end), The Party Place notifies Star Inc. that 65% of the merchandise

Sep 8, 2023

Star Inc. ships merchandise on consignment to The Party Place, a retailer on February 13, 2020. The cost of the merchandise is $26,000, and Star Inc. pays the freight cost of $1,900 to ship the goods to the retailer. On November 30, 2020 (The Party Place accounting year end), The Party Place notifies Star Inc. that 65% of the merchandise has been sold for $72,000. The Party Place retains a 10% commission as well as $3,900, which represents advertising costs it paid, and remits the balance owing to Star Inc. Please make sure your final answer(s) are accurate to 2 decimal places.

a) Complete the journal entries required by Star Inc. for the above transactions. Enter an appropriate description

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Star Inc. ships merchandise on consignment to The Party Place, a retailer on February 13, 2020. The cost of the merchandise is $26,000, and Star Inc. pays the freight cost of $1,900 to ship the goods to the retailer. On November 30, 2020 (The Party Place accounting year end), The Party Place notifies Star Inc. that 65% of the merchandise
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b) Complete the journal entries required by The Party Place for the above transactions on their accounting year end. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan).

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