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Question - In December, the Mutual Publishing Company ships 20 sets of books to a book dealer on consignment. The consignor maintains a cost accounting system and perpetual inventories; the cost of manufacturing each set is P3,000.00. At the end of December, the dealer reports the sale of 8 sets at P5,000.00 each and remits sales proceeds less 15% representing commissions and all expenses paid by the consignee. Freight paid by the consignee on the receipt of the sets is P2,500. Delivery and installation expense for the units sold was P1,200. The consignee returned 1 defective set of books to the consignor and paid freight of P300. How much is the net income related with the consignment sales?
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