Integrity Company consigned 2,000 units of special equipment, costing P1,200 each to Honesty Company to be sold at P1,600 per unit. The agreement calls for 15% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. Integrity paid P20,000 freight and insurance of P10,000 for the shipment. At the end of the month, Honesty remitted the amount due to the consignor after deducting commission of P360,000 and advertising costs of P20,000. Record shows that 300 units were left to the consignee and some units were returned to the consignor. Integrity paid the cost of shipment of the returned units amounting to P5,000. Determine the consignment income.
Integrity Company consigned 2,000 units of special equipment, costing P1,200 each to Honesty Company to be sold at P1,600 per unit. The agreement calls for 15% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. Integrity paid P20,000 freight and insurance of P10,000 for the shipment. At the end of the month, Honesty remitted the amount due to the consignor after deducting commission of P360,000 and advertising costs of P20,000. Record shows that 300 units were left to the consignee and some units were returned to the consignor. Integrity paid the cost of shipment of the returned units amounting to P5,000. Determine the consignment income.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 63P
Related questions
Question
Integrity Company consigned 2,000 units of special equipment, costing P1,200 each to Honesty Company to be sold at P1,600 per unit. The agreement calls for 15% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. Integrity paid P20,000 freight and insurance of P10,000 for the shipment. At the end of the month, Honesty remitted the amount due to the consignor after deducting commission of P360,000 and advertising costs of P20,000. Record shows that 300 units were left to the consignee and some units were returned to the consignor. Integrity paid the cost of shipment of the returned units amounting to P5,000.
Determine the consignment income.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Business Its Legal Ethical & Global Environment
Accounting
ISBN:
9781305224414
Author:
JENNINGS
Publisher:
Cengage
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College