Spider Inc. consigned ten electric bikes costing P30,000 per bike to Web Company. Spider incurred freight of P100 per bike. Web will sell the bikes for P50,000 and will be entitled to a 15% commission on such sale. Web incurs expenses in relation to selling seven bikes to customers amounting to P5,000 which was reimbursable under the consignment agreement. How much is the net profit of Spider related to the seven bikes sold? a. 81,500 b. 81,800 c. 86,500 d. 86,800
Spider Inc. consigned ten electric bikes costing P30,000 per bike to Web Company. Spider incurred freight of P100 per bike. Web will sell the bikes for P50,000 and will be entitled to a 15% commission on such sale. Web incurs expenses in relation to selling seven bikes to customers amounting to P5,000 which was reimbursable under the consignment agreement. How much is the net profit of Spider related to the seven bikes sold? a. 81,500 b. 81,800 c. 86,500 d. 86,800
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 7MCQ
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Spider Inc. consigned ten electric bikes costing P30,000 per bike to Web Company. Spider incurred freight of P100 per bike. Web will sell the bikes for P50,000 and will be entitled to a 15% commission on such sale. Web incurs expenses in relation to selling seven bikes to customers amounting to P5,000 which was reimbursable under the consignment agreement.
How much is the net profit of Spider related to the seven bikes sold?
a. 81,500
b. 81,800
c. 86,500
d. 86,800
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