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Journal entries for received deposit from T-Bone Enterprises.
1.(3/12/2009) Consigned $123,000 of Merchandise Inventory to Perkins Consolidated. Goochland retains title to the goods, and will record sales only if informed of such by Perkins Consolidated, who will keep 15% of the sales price under the consignment arrangement.
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2.(3/14/2009) Received a $10,000 deposit from T-Bone Enterprises for 2,000 units of product. T-Bone has 20 days to purchase the goods for the fair market value of the goods on the date of purchase; otherwise, the deposit will be refunded to T-Bone.
Purpose a vertical analysis of the income statement showing appropriate percentages for each item listed above. and what additional information would you need to determine whether these percentages are good or bad?
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