Reference no: EM132597360

On December 1, 2020 ROCKY Inc. delivered 100 sacks of a new cement product and 100 packs of samples products, for testing purposes to HARDWARE STORE on a consignment basis. The hardware does not take title to the products and has no obligation to pay ROCK until they are sold to the final customer. Any unsold products, excluding those that are lost or damaged, can be returned to ROCK Inc. and the later has discretion to call products back or transfer products to another customer.ROCK manufactures the product at a cost of P500 per sack of cement and P10 per pack of sample. There is freight collect of P2,000 for the delivery of 100 sacks of cement to HARDWARE STORE but none for the samples. The selling price of the cements is P800 per sack for cash sales and P1,000 per sack for credit sales with a term 2/10, n/30. The HARDWARE is entitled to a 5% commission on cash sales and 10% commission on net credit sales already collected. The HARDWARE has the right to be reimbursed for the freight it incurred for its delivery to final customers. ROCK provides bad debts at an estimate of 8% based on the ending receivables.For the month ended December 31, 2020, HARDWARE store was able to sell to final customers 30 sacks of cement on cash basis and 50 sacks of cement on account. There is freight prepaid of P3,000 for the delivery of cement sacks to final customers. Also, final customers tested fifty packs of sample cement. The customers on account paid thirty out of fifty sacks sold on credit within the discount period but the remainder continued to be unpaid as of December 31, 2020. At December 31, 2020, HARDWARE made remittance to ROCK Inc.

Question 1: Under PFRS 15, what is HAWDWARE's net remittance to ROCK on December 31, 2020?