Problem:
ABC Inc. ships merchandise on consignment to Resource Product Co., a retailer on January 22, 2020. The cost of the merchandise is $24,000, and ABC Inc. pays the freight cost of $1,500 to ship the goods to the retailer. On August 31, 2020 (Resource Product Co. accounting year end), Resource Product Co. notifies ABC Inc. that 80% of the merchandise has been sold for $51,000. Resource Product Co. retains a 5% commission as well as $4,700, which represents advertising costs it paid, and remits the balance owing to ABC Inc. Please make sure your final answer(s) are accurate to 2 decimal places. a) Complete the journal entries required by ABC Inc. for the above transactions. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan)