Reference no: EM132982176

Question - In 2020, Shop Wholesalers transferred goods to a retailer on consignment. The goods cost P450,000 and normally sold at a 50% markup based on cost. Shop Wholesalers paid P5,000 for the cost of shipment while the retailer paid P3,800 for advertising and P2,800 for the cost of freight out. The parties agreed that Shop Wholesalers would reimburse the cost of advertising and freight paid by the retailer. In 2020, the retailer at the normal markup sold 60% of the merchandise, and the balance of the merchandise was returned to the consignor incurring freight of P1,500 paid by the consignor. The retailer withheld a 15% commission from payment plus the amount reimbursable by the consignor.

Required -

Find the amount remitted by the retailer to the consignor?

Find the net income earned by the consignor on the shipment?Business