Basti Co. delivered 150 portable gas stoves to Sarah Co. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Basti Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. How many units were sold by Sarah during the first month? a. 15 b. 20 c. 25 d. 30 How much is the amount remitted by Sarah to Basti for the first month? a. 67,500 b. 20,250 c. 22,950 d. 47,250 The consignment profit (loss) to Basti is a. 16,875 b. 6,750 c. 20,250 d. 10,125
Basti Co. delivered 150 portable gas stoves to Sarah Co. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Basti Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. How many units were sold by Sarah during the first month? a. 15 b. 20 c. 25 d. 30 How much is the amount remitted by Sarah to Basti for the first month? a. 67,500 b. 20,250 c. 22,950 d. 47,250 The consignment profit (loss) to Basti is a. 16,875 b. 6,750 c. 20,250 d. 10,125
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
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Basti Co. delivered 150 portable gas stoves to Sarah Co. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Basti Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135.
How many units were sold by Sarah during the first month?
a. 15
b. 20
c. 25
d. 30
How much is the amount remitted by Sarah to Basti for the first month?
a. 67,500
b. 20,250
c. 22,950
d. 47,250
The consignment profit (loss ) to Basti is
a. 16,875
b. 6,750
c. 20,250
d. 10,125
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