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Tundra Electronics Company Sends Appliances to Dealers on a Consignment

Question 63

Essay

Tundra Electronics Company sends appliances to dealers on a consignment basis.The selling price per unit is $920 and the dealer earns a 30% commission.The manufacturing cost of the appliance to Tundra Electronics is $570.Assume that in 2014,800 units were sent on consignment to Farber Hardware.Four hundred of these units were sold for cash,and by December 31,2011,remittance had been made to Tundra Electronics for 380 units.
Prepare the required journal entries on the books of Tundra Electronics Company and Farber Hardware for the transactions in 2014.

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