Find cost of inventory on consignment and net income

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Reference no: EM132713901

On June 1, 2019, AA Company shipped 25 television sets to BB, Inc. on consignment. The sets are to be sold at an advertised price of P24,000. The cost of each set to the consignor was P12,000. The cost of shipment paid by the consignor was P9,000. The consignor agreed to absorb the consignee's expenditure for freight and also to allow the consignee P1,200 for delivery and installation of each set. Commission is to be 25% of the sales price.

Required:

Question a. Prepare account sales and determine the amount of remittance.

Question b. Determine the cost of inventory on consignment and net income.

Reference no: EM132713901

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