Solution-How much is the net profit of the consignor

How much is the net profit of the consignor

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Reference no: EM132988917

Question - Under a consignment arrangement, CONSIGNOR COMPANY ships 24 units special electronic gadgets called Tsamba Bebe to CONSIGNEE ENTERPRISES. The cost per unit to Consignor, Inc. is P1,500 and the goods will be sold at P2,400 each for a 10% commissions on gross sales. Freight charges paid by the consignor on the shipments was P1,500. At the end of 30 days, the consignee rendered an Account Sales for 18 units sold and reimbursable charges for: Delivery expenses, P1,000 and Advertising, P1,500, among others. The consignor uses the Consignment-Out account in accounting for the consignments. On the other hand, the Consignee uses the Consignment-In account.

1) How much is the net remittance by the consignee?

A. 33,680

B. 36,830

C. 36,380

D. 30,638

2) How much is the net profit of the consignor?

A. 2,513

B. 8,255

C. 5,555

D. 8,705

3. How much is the adjusted balance of the Consignment Out account after recognition of the net profit?

A. 9,375

B. 5,973

C. 3,957

D. 7,935

Reference no: EM132988917

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How much is the net profit of the consignor

Reference no: EM132988917

Reference no: EM132988917

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