USA Journal entry question / consignment sales

[schoolboy]

We've recently acquired a business that sells items on consignment for a tenant when she isn't present. If we sell $100 of her stuff, we take 12% of sales amount, which is 7% for sales tax and 5% for us. I'm probably overthinking the journal entry piece and/or don't have my COA set up right. (For items we sell for her, we report the sales and pay the sales tax.) My initial entry is:
Cash + $107
Sales tax liab. owed ($7)
Consignment sales ($100)

Where I run into my hang up is the second piece:
Consignment net owed to tenant ($88)
If I enter $88 for consignment expenses to balance the entry, I'm netting $12 of income, which is $7 too high.


Thanks in advance.

 

[vpryce]

These are the two entries I would make.
1. Up on completion of Sales:

Dr. Cash $107
Cr. Sales Tax Payable $7
Cr. Consignment Revenue $5
Cr. Consignment Sales Payable $95


2. When both sales taxes and consignment sales are remitted.

Dr. Sales Tax Payable $7
Dr. Consignment Sales Payable $95
Cr. Cash $102

I hope this helps.....cool cool