.Net income by the consignor as a result of the above transactions: 2. The amount remitted to the consignor:
Annalise Inc., agrees to transfer television sets to Keating Co. on a consignment basis. The consignee is
to sell a set at 40% gross profit and is to receive a 10% commission on sales price. The company
account all the inventoriable costs before setting the selling price. The consignor agrees to reimburse the
consignee for all expenses related to the consignment. The agreement also calls for an advance payment
by the consignee of 20% per set based on selling price; the said advance is to be deducted as settlement
is made for each set sold and returned. The consignee is to provide an account sale quarterly and is to
make cash remittance for the amount owed at that time. The following consignment sales activities
occurred during the October 1 to December 31 of current year:
Sets shipped – 100;
consignor – P 60,000; The consignee made advance payments on the sets received; Advertising cost paid
by the consignee – P 30,000
The consignee sold 80 sets for cash; expenses of delivery and installation were P 20,000. After notifying
the consignor with the total sets sold for the period, the consignee returned 10 sets and paid
corresponding freight charges of P 5,000 on the return.
1.Net income by the consignor as a result of the above transactions:
2. The amount remitted to the consignor:
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