Reference no: EM132597709

On decemeber 1, 2020, Sabels Inc. delivered 10 boxes of loaf bread and 10 packs of sample bread, for tasting-purposes, to 24/7 retail store on a consignment arrangement. The retail store does not take title to the products and has no obligation to pay Sabels Inc.until they are sold to the final customers. Any unsold products, excluding those that are lost or damages, can be returned to Sabels Inc. And the latter has discretion to call production back or transfer products to another customer.

• Sabels manufactures the product at a cost of P5,000 per box of loaf bread and P100 per pack of sample bread. There s freight collect of P2,000 for the delivery of 10 boxes of loaf bread to 24/7 but none for the sample bread. The selling price of the loaf bread product is P8,000 per box for P10,000 per box for credit sales with a term of 2/10 n/30. The retail store I entitled to a 5% commission on cash sales and 10% commission on net credit sales already collected. The store has the right to be reimbursed for the freight it incurred for its delivery to final customers. Sabels Inc. provides bad debt expense at an estimated of 8% based on ending receivables.
• For the month ended December 31, 2020. 24/7 retail store was able to sell to final consumers 3 boxes of loaf bread on cash basis and 5 boxes of loaf bread on account. There is freight prepaid of P3,000 for the delivery of boxes of load bread to final consumers. Also, fiver packs sample bread were consumed by final customers during the tasting period. The customers on account paid to 24/7 three out of five boxes sold on credit within the discount period but the remainder continued to be unpaid as of december 31, 2020. at december 31,2020, 24/7 Retail storemade its net remittance to Sabels Inc.

Question 1: Under PFRS15, what is 24/7's net remittance to Sabels on December 31,2020?