Landon will pay interest over the life of his 30-year loan. What other responsibility does he have to lender Marco when he finances his loan

1) Cash Dr.  $19,260 (21,400-2,140)

Commission Expense Dr.  $2,140 (10% of 21,400)

                           Sales Cr.  $21,400

2) COGS Dr. $12932 (61% of 21,200)

                Inventory Cr. $12932

Explanation:

Cash received to Buffalo Corp. shall be total sales i.e. $21,400 less the commission retained by Gooch Co. i.e. 10% of $21,400.

Buffalo Corp. shall expense out the commission and Sales shall be recorded by the gross amount.

the second entry shows Inventory being credited by the amount of Cost i.e 61% of goods shipped to Gooch (61% of $21,200).