Reference no: EM13370582

Tingey Industries sells merchandise on a batch basis to dealers. The selling price of the merchandise averages 25 percent above cost of merchandise. The dealer is paid a 10 percent commission on the sales price for all sales made. All dealer sales are made on a cash basis. The subsequent consignment sales activities occurred through 2011.
Manufacturing cost of merchandise shipped on consignment . . . . . . . . . . . . . $250,000
Sales price of goods sold by dealers . . . . . . . . . . . . . . . . . . . . . . 220,000
Payments made by dealers after deducting commission . . . . . . . . . . . . 139,000

Instructions:

1. Create summary entries on the books of the consignor for consignment sales transactions.

2. Create summary entries on the books of the dealer consignee; consider there is only one dealer involved.

3. Create the parts of Tingey Industries' financial statements at 31st December, 2011, that relate to these consignment sales.