On April 15, 2014 Pandora shipped 15 various pieces of furniture to By Design Company for a total of $12,500 plus shipping of $50 a piece. The furniture had a cost of 5 pieces for $500 each and 10 pieces for $1,000 each. Payment was required at year end for any furniture sold. On December 31, 2014, the consignee reported that it sold all 5 of the $500 pieces for $1,250 each and 5 of the $1,000 pieces for $1,850 each. The consignee paid Pandora under the agreement less a 10% commission fee and advertising costs of $1,500.
Required:
1) Prepare the 2014 journal entries for By Design.
2) Prepare the 2014 journal entries for Pandora.

Question

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The Answer of On April 15, 2014 Pandora shipped 15 various pieces of furniture to By Design Company for a total of $12,500 plus shipping of $50 a piece. The furniture had a cost of 5 pieces for $500 each and 10 pieces for $1,000 each. Payment was required at year end for any furniture sold. On December 31, 2014, the consignee reported that it sold all 5 of the $500 pieces for $1,250 each and 5 of the $1,000 pieces for $1,850 each. The consignee paid Pandora under the agreement less a 10% commission fee and advertising costs of $1,500.
Required:
1) Prepare the 2014 journal entries for By Design.
2) Prepare the 2014 journal entries for Pandora.

On April 15, 2014 Pandora Shipped 15 Various Pieces of Furniture