Reference no: EM132771897

Flabbergasted co received a shipment of merchandise with a selling price of 15,000 on March 15 2016 from sanoya co. The consigned goods cost sanaol co 10,000 and freight charges of 120 had been paid for shipping. Agreement provide for a 2/10, n/30 for a sale of marchandise. The 15% commission is based on the accounts receivable collected by consignee. Cash discounts taken by customers expenses applicable and any cash advances are deductible from the remittance. Flabbergasted co advanced 6000 to sanaol co upon receipt of shipment. An expense of P800 was paid by ewan . By April 2016 70% of shipment had been sold and 80% of the AR had been collected within the dicsount perod. Remittance of the amount due was made on April 30 2016.

Problem 1: Profit on consignment will be