1. On the 5 of December, “Christmas Articles” (a company that sells Christmas trees) sent 15 trees
on consignation to another company named “Bazar Navideño”. The cost of each tree its $500,
“Christmas Articles” sends the trees with a fixed price of $900 and they should sell at $1500
each, with a 10% commission over the selling price.
On the 18 of December, 8 trees were sold, receiving cash for 5 of them, so 3 of them were sold at
credit.
On the 20 of December, bills are delivered by sending the total cash on hand after substracting
the agreed commission.
A) Record what corresponds to " Christmas articles , SA de CV " for the operation on 20
December.
B ) Record what corresponds to BazarNavideño , SAdeC.V . for the " operation on December 20
.
Solution
Bazar Navideno Christmas Articles Dr. Christmas Articles $6,750 Dr. Cash A/c $6,750 Cr.
Commission A/c $750 Cr. Christmas Articles $6,750 Cr. Cash $6,750