On August, 2019, HBO consigned to GEO 10 laptops costing $15,000 each, paying freight charge of $15,000. At the end of the month, GEO reported sales of 6 handbags at $30,000 each and incurred expenses of $12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. REQUIREMENT: How much net income did HBO realize in August on the consignment? A. 37,500 income. B. 32,500 income C. 33,500 loss D. 32,500 loss What is the total cost of inventory of the unsold handbags A. 60,000 B. 66,000 C. 71,000 D. 75,000
On August, 2019, HBO consigned to GEO 10 laptops costing $15,000 each, paying freight charge of $15,000. At the end of the month, GEO reported sales of 6 handbags at $30,000 each and incurred expenses of $12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. REQUIREMENT: How much net income did HBO realize in August on the consignment? A. 37,500 income. B. 32,500 income C. 33,500 loss D. 32,500 loss What is the total cost of inventory of the unsold handbags A. 60,000 B. 66,000 C. 71,000 D. 75,000
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 10MC
Related questions
Question
100%
PROBLEM:
On August, 2019, HBO consigned to GEO 10 laptops costing $15,000 each, paying freight charge of $15,000. At the end of the month, GEO reported sales of 6 handbags at $30,000 each and incurred expenses of $12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price.
REQUIREMENT:
How much net income did HBO realize in August on the consignment?
A. 37,500 income. B. 32,500 income
C. 33,500 loss D. 32,500 loss
What is the total cost of inventory of the unsold handbags
A. 60,000 B. 66,000 C. 71,000 D. 75,000
THANK YOU SO MUCH IN ADVANCE FOR THE HELP :)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 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
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College