Part 3:
Lebanon Corporation shipped JOD20,000 of merchandise on consignment to Egypt Company.
Lebanon paid freight costs of JOD2,000. Egypt Company paid JOD500 for local advertising,
which is reimbursable from Lebanon. By year-end, 60% of the merchandise had been sold for
JOD21,500. Egypt notified Lebanon, retained a 10% commission, and remitted the cash due to
Lebanon. Prepare the journal entries:
- For Egypt company when the cash due remitted to Lebanon company (2 Marks)
- For Lebanon Company when the cash is received. (3 Marks)
