ABC Co., consigned 5 dozen of stainless chairs to DEF Co.on April 1. 2021. Each chair cost P120 and the consignor paidP600 for the shipment to the consignee. On August 15, 2021,36 chairs were already sold and the consignee rendered anaccount sale, and remitted the balance due the consignor inthe amount of P5,580 after deducting the following:Commission at 15% of the selling priceSelling expensesDelivery and installation.P360180Compute for the cost of inventory on consignment in thehand of DEF Co.

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ABC Co., consigned 5 dozen of stainless chairs to DEF Co on April 1. 2021. Each chair cost P120 and the consignor pai P600 for the shipment to the consignee. On August 15, 2021 36 chairs were already sold and the consignee rendered a account sale, and remitted the balance due the consignor i the amount of P5,580 after deducting the following: Commission at 15% of the selling price Selling expenses Delivery and installation P360 180 Compute for the cost of inventory on consignment in the hand of DEF Co.

ABC Co., consigned 5 dozen of stainless chairs to DEF Co on April 1. 2021. Each chair cost P120 and the consignor pai P600 for the shipment to the consignee. On August 15, 2021 36 chairs were already sold and the consignee rendered a account sale, and remitted the balance due the consignor i the amount of P5,580 after deducting the following: Commission at 15% of the selling price Selling expenses Delivery and installation P360 180 Compute for the cost of inventory on consignment in the hand of DEF Co.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...

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ABC Co., consigned 5 dozen of stainless chairs to DEF Co. on April 1, 2021. Each chair cost P120 and the consignor paid P600 for the shipment to the consignee. On August 15, 2021, 36 chairs were already sold and the consignee rendered an account sale, and remitted the balance due the consignor in the amount of P5,580 after deducting the following: Commission at 15% of the selling price Selling expenses P360Delivery and installation 180Compute for the cost of inventory on consignment in the hand of DEF Co.
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