On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. How much net income did HBO realize in August on the consignment? A. 37,500 income C. 33,500 loss B. 32,500 income D. 32,500 loss What is the total cost of inventory of the unsold handbags? A. 60,000 С. 71,000 В. 66,000 D. 75,000
On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. How much net income did HBO realize in August on the consignment? A. 37,500 income C. 33,500 loss B. 32,500 income D. 32,500 loss What is the total cost of inventory of the unsold handbags? A. 60,000 С. 71,000 В. 66,000 D. 75,000
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 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....
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Transcribed Image Text:On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of
P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred
expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on
the sales price.
How much net income did HBO realize in August on the consignment?
A. 37,500 income
C. 33,500 loss
B. 32,500 income
D. 32,500 loss
What is the total cost of inventory of the unsold handbags?
A. 60,000
C. 71,000
В. 66,000
D. 75,000
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