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Problem 1: On January 2, 2019, Jose Company established a sales agency in Pasig City. During the year the following transactions occurred: Transfer of P10,000 worth of merchandise to Pasig Agency to establish a working fund; Receipts of sales orders from the agency, P100,000; Collection of agency accounts by the home office, P70,000; Home office disbursements representing agency expenses, P9,000; Replenishment of the agency working fund upon receipt of expense vouchers for P4,500; Cost of goods sold identified with the agency sales, P72,000. What is the net income (loss) of the agency for the year, 2019?
Select one:
Option 1: P14,500Option 2: P14,000Option 3: P4,500Option 4: (P14,500)
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