On December 1, 2020, Hidilyn Inc. delivered 10 boxes of Otap bread and 10 packs of sample bread, for tasting-purposes, to Vanessa Retail Store on a consignment arrangement. The retail store does not take title to the products and has no obligation to pay Hidilyn Inc. until they are sold to the final customers. Any unsold products, excluding those that are lost or damaged, can be returned to Hidilyn Inc. and the latter has discretion to call products back or transfer products to another customer. Hidilyn manufactures the product at a cost of P 5,000 per box of Otap bread and P 100 per pack of sample bread. There is freight collect of P2,000 for t delivery of 10 boxes of Otap bread to Vanessa but none for the sample bread. The selling price of the Otap product is P 8,000 per box for cash sales anc 10,000 per box for credit sales with term of 2/10 n/30. The retail store is entitled to a 5% commission on cash sales and 10% commission on credit sale already collected. The retail store has the right to be reimbursed for the freight it incurred for its delivery to final customers. Hidilyn Inc. provides bad det expense at an estimate of 8% based on ending receivables. For the month ended December 31, 2020, Vanessa retail store was able to sell to final customers 3 boxes of Otap bread on cash basis and 5 boxes of Or bread on account. There is freight prepaid of P 3,000 for the delivery of boxes of Otep bread to final customers. Also, five packs of sample bread were consumed by final customers during the tasting period. The customers on account paid to Vanessa three out of five boxes sold on credit within the discount period but the remainder continued to be unpaid as of December 31, 2020. At December 31, 2020, Vanessa Retail Store made its net remittand to Hidilyn Inc. Under PFRS 15, what is Hidilyn's net Income for 2020 in connection with the consignment arraignment ?
On December 1, 2020, Hidilyn Inc. delivered 10 boxes of Otap bread and 10 packs of sample bread, for tasting-purposes, to Vanessa Retail Store on a consignment arrangement. The retail store does not take title to the products and has no obligation to pay Hidilyn Inc. until they are sold to the final customers. Any unsold products, excluding those that are lost or damaged, can be returned to Hidilyn Inc. and the latter has discretion to call products back or transfer products to another customer. Hidilyn manufactures the product at a cost of P 5,000 per box of Otap bread and P 100 per pack of sample bread. There is freight collect of P2,000 for t delivery of 10 boxes of Otap bread to Vanessa but none for the sample bread. The selling price of the Otap product is P 8,000 per box for cash sales anc 10,000 per box for credit sales with term of 2/10 n/30. The retail store is entitled to a 5% commission on cash sales and 10% commission on credit sale already collected. The retail store has the right to be reimbursed for the freight it incurred for its delivery to final customers. Hidilyn Inc. provides bad det expense at an estimate of 8% based on ending receivables. For the month ended December 31, 2020, Vanessa retail store was able to sell to final customers 3 boxes of Otap bread on cash basis and 5 boxes of Or bread on account. There is freight prepaid of P 3,000 for the delivery of boxes of Otep bread to final customers. Also, five packs of sample bread were consumed by final customers during the tasting period. The customers on account paid to Vanessa three out of five boxes sold on credit within the discount period but the remainder continued to be unpaid as of December 31, 2020. At December 31, 2020, Vanessa Retail Store made its net remittand to Hidilyn Inc. Under PFRS 15, what is Hidilyn's net Income for 2020 in connection with the consignment arraignment ?
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
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Under PFRS15, What is Vanessa's net remittance to Hidilyn on December 31, 2020
Transcribed Image Text:On December 1, 2020, Hidilyn Inc. delivered 10 boxes of Otap bread and 10 packs of sample bread, for tasting-purposes, to Vanessa Retail Store on a
consignment arrangement. The retail store does not take title to the products and has no obligation to pay Hidilyn Inc. until they are sold to the final
customers. Any unsold products, excluding those that are lost or damaged, can be returned to Hidilyn Inc. and the latter has discretion to call products
back or transfer products to another customer.
Hidilyn manufactures the product at a cost of P 5,000 per box of Otap bread and P 100 per pack of sample bread. There is freight collect of P2,000 for the
delivery of 10 boxes of Otap bread to Vanessa but none for the sample bread. The selling price of the Otap product is P 8,000 per box for cash sales and P
10,000 per box for credit sales with term of 2/10 n/30. The retail store is entitled to a 5% commission on cash sales and 10% commission on credit sales
already collected. The retail store has the right to be reimbursed for the freight it incurred for its delivery to final customers. Hidilyn Inc. provides bad debt
expense at an estimate of 8% based on ending receivables.
For the month ended December 31, 2020, Vanessa retail store was able to sell to final customers 3 boxes of Otap bread on cash basis and 5 boxes of Otap
bread on account. There is freight prepaid of P 3,000 for the delivery of boxes of Otep bread to final customers. Also, five packs of sample bread were
consumed by final customers during the tasting period. The customers on account paid to Vanessa three out of five boxes sold on credit within the
discount period but the remainder continued to be unpaid as of December 31, 2020. At December 31, 2020, Vanessa Retail Store made its net remittance
to Hidilyn Inc.
Under PFRS 15, what is Hidilyn's net Income for 2020 in connection with the consignment arraignment?
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