5. Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted thefollowing report at the end of the period:Sales (6 units)Less: Advances to Aircon, Inc.Selling expensesInstallation and deliveryCommission72,00010,0008001,2007,20019,20052,800Net remittanceThe selling expenses and the installation and delivery costs are chargeable to Aircon. Airconconsistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does notreflect any freight. How much was Aircon's profit or loss on the consignment?a. 52,800 profitc. 2,200 profitPage I 2b. 7,800 lossd. 1,400 loss

Answered: Image /qna-images/answer/80edec6d-a97b-4f92-a3d9-09bc244e3d53.jpg

5. Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery 72,000 10,000 800 1,200 7,200 Commission 19,200 52,800 Net remittance The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was Aircon's profit or loss on the consignment? a. 52,800 profit c. 2,200 profit Page I 2 b. 7,800 loss d. 1,400 loss

5. Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery 72,000 10,000 800 1,200 7,200 Commission 19,200 52,800 Net remittance The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was Aircon's profit or loss on the consignment? a. 52,800 profit c. 2,200 profit Page I 2 b. 7,800 loss d. 1,400 loss

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Shaw company sells good that cost 600,000 to Charm company for 800,000 on January 2, 20x5. the sales price includes an installation fee, which is valued at 80,000. the fair value of the goods is 740,000. the installation is considered a separate performance obligation and is expected to take 6 months to complete. Prepare the journal entries to record the sale on January 2, 20x5. Shaw prepares income statement for the first quarter of 20x5, ending March 31, 20x5 (installation was completed on June 18, 20x5). How much revenue should Shaw recognize related to its sale to Charm?
Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs and Markson paid $360 for 5,000 copies and $280 for 3,000 copies,
Ines Company consigned twenty five (25) calculators, with cost of P800 each, to Hola Company for a commission of 10% of selling price. Ines Company paid shipping costs of P1,000 on the shipment. Correspondingly, Hola Company paid P500 on the freight of the shipment. On the last day of the year, Hola Company reported that it had sold twenty (20) of the calculators, fifteen (15) for cash at P1,500 each and five (5) on credit at P1,800 each, of which 25% was collected as down payment. Hola Company incurred P650 for delivery of the sold units and remitted all the cash due. How much is the consignment profit?
GIRLAND INC. consigned 4,800 medical equipment costing P90 and retailing for P3,000 each to ABA Co. Freight cost of P4,800 was paid as freight expenses by the consignor. After a month, GIRLAND received P213,030 in full settlement of the balance due. The consignor deducted a commission of P600 for each equipment sold, P270 for delivery expense and P300 for advertising expense. How many medical equipment were sold?
Please show your solution in good accounting form. Thank you!
The choices are 240K, 248K, 256K and 260K
Show the solution in good accounting form
NAPAPALUNOK AKO AS OF THE MOMENT INC. sells 3-year service contracts for air conditioning units for P1,500 each. Sales of service contracts are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year, and 50% in the third year. Service contracts sold are as follows. How much is the unearned revenue from service contracts as of December 31, 2019? Use the information given. How much is the unearned revenue from service contracts as of December 31, 2020? a. P4,657,125 b. P3,468,750 c. P2,475,000 d. P1,237,500
None
MAYUMI Co. sold 50,000 units at P 225 per unit during May of this year. The cost per unit is P150. The entity granted the customers right to return within 90 days if not satisfied and will receive either a full refund if cash was already paid or a full credit for the amount owed to the entity. It is estimated that 7% of the units sold will be returned within the 90-day period. The entity used the perpetual method. What amount of sales revenue should be reported for the month of May?
None
Please write the solutions in good accounting form. Thanks!