(multiple choice) Wedington Manufacturing Co. ships merchandise costing $26,000

Question

(multiple choice)

Wedington Manufacturing Co. ships merchandise costing $26,000 on consignment to Beaver Lake Value Stores. Wedington pays $2,600 of freight costs, and Beaver pays $500 for local advertising costs that are reimbursable from Wedington. By the end of the period. Beaver has sold one-half of the consigned merchandise for $35,000 cash. Beaver notifies Wedington of the sales, retains a 10% commission, and remits the cash due Wedington. Wedington's journal entry to record the cash received and revenue will include a: Debit to Cash for $35,000 Credit to Revenue from Consignment Sales for $31,000 Credit to Commission Revenue for $3,500 Debit to Cash for $31,000

Explanation / Answer

Debit to cash $31,000

Credit to revenue from consignment sales for $31,000

Option B and D are correct answers.

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