5. Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted thefollowing report at the end of the period:Sales (6 units)Less: Advances to Aircon, Inc.Selling expensesInstallation and deliveryCommission72,00010,0008001,2007,20019,20052,800Net remittanceThe selling expenses and the installation and delivery costs are chargeable to Aircon. Airconconsistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does notreflect any freight. How much was Aircon's profit or loss on the consignment?a. 52,800 profitc. 2,200 profitPage I 2b. 7,800 lossd. 1,400 loss

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5. Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery 72,000 10,000 800 1,200 7,200 Commission 19,200 52,800 Net remittance The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was Aircon's profit or loss on the consignment? a. 52,800 profit c. 2,200 profit Page I 2 b. 7,800 loss d. 1,400 loss

5. Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery 72,000 10,000 800 1,200 7,200 Commission 19,200 52,800 Net remittance The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was Aircon's profit or loss on the consignment? a. 52,800 profit c. 2,200 profit Page I 2 b. 7,800 loss d. 1,400 loss

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 63P

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