3. Factor’s books during the course of consignment transactions:
| Customers | 1,600.00 | ||
| J. J. Querles, Principal | 1,600.00 | ||
| To credit Querles with the sales. | |||
| J. J. Querles, Principal | 123.30 | ||
| Customers | 27.30 | ||
| Commissions | 80.00 | ||
| Collections Guarantee | 16.00 | ||
| To charge Querles with all expenses. | |||
| Consignments-In | 1,250.00 | ||
| Consignment | 1,250.00 | ||
| To reverse. | |||
4. Querles’ books upon receipt of the account sales:
| Consignment, I. M. Factor, No. 1 | 175.80 | ||
| I. M. Factor | 1,424.20 | ||
| Consignment, I. M. Factor, No. 1 | 1,600.00 | ||
| To credit the consignment with its sales and charge it with its expenses, including commission and to charge Factor with the balance due. | |||
| Consignment, I. M. Factor, No. 1 | 134.20 | ||
| Consignments Profit and Loss | 134.20 | ||
| To transfer the profit on this consignment. | |||
5. When Factor finally remits the balance of $1,424.20, his entry is:
| J. J. Querles, Principal | 1,424.20 | ||
| Cash | 1,424.20 | ||
thus canceling his liability to Querles.
6. Querles’ books will show:
| Cash | 1,424.20 | ||
| I. M. Factor | 1,424.20 | ||
canceling his claim against Factor.