Prepare the required journal entries on the books of summit

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Reference no: EM132707651

Summit Electronics Company sends appliances to dealers on a consignment basis. The selling price per unit is P920 and the dealer earns a 30% commission. The manufacturing cost of the appliance to Summit Electronics is P570. Assume that in 2019, 800 units were sent on consignment to Farley Hardware. Four hundred of these units were sold for cash, and by December 31, 2019, remittance had been made to Summit Electronics for 380 units.

Required:

Question 1: Prepare the required journal entries on the books of Summit Electronics Company and Farley Hardware for the transactions in 2019.

Reference no: EM132707651

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