Reference no: EM132814240

On May 1, the Thailand products Company ships five (5) of its appliances to the Korea Company on consignment. Each unit is to be sold at P250,000 payable P50,000 in the month of purchase and P10,000 per month thereafter. The consignee is to be entitled to 20% of all amounts collected on consignment sales. Korea Company sells 3 appliances in May and 1 in June. Regular monthly collections are made by the consignee, and appropriate cash remittances are made to the consignor at the end of each month. The cost of the appliances shipped by the consignor was P155,000 per unit. The consignor paid shipping costs to the consignee totaling P50,000.

Problem 1: The cash remittance to consignor and the consignment profit are