A Co. consigned eight printing machines to B Co. Each machine costs ₱1,000,000 and has a suggested retail price of ₱2,100,000. A paid ₱200,000 in transporting the machines to the consignee’s place of business. At the end of the period, B remitted ₱8,417,500 to A representing collections on sales during the period, after deducting the following: Commission (based on sales net of commission) 20% Finder’s fee (based on commission) 5% Delivery, installation and testing (on each unit sold) ₱50,000 Materials generated from the testing were sold for ₱5,000 and included in the remittance to A Co. JENCHULICHAENG Co. appropriately reported ending inventory of ₱3,075,000 for the unsold consigned machines. a. How much is the commission earned by the consignee? b. How much profit is earned by the consignor from the sale?

A Co. consigned eight printing machines to B Co. Each machine costs ₱1,000,000 and has a suggested retail price of ₱2,100,000. A paid ₱200,000 in transporting the machines to the consignee’s place of business. At the end of the period, B remitted ₱8,417,500 to A representing collections on sales during the period, after deducting the following: Commission (based on sales net of commission) 20% Finder’s fee (based on commission) 5% Delivery, installation and testing (on each unit sold) ₱50,000 Materials generated from the testing were sold for ₱5,000 and included in the remittance to A Co. JENCHULICHAENG Co. appropriately reported ending inventory of ₱3,075,000 for the unsold consigned machines. a. How much is the commission earned by the consignee? b. How much profit is earned by the consignor from the sale?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 63P

See similar textbooks

Similar questions

On October 5, 2024, the Lalisa Trading Company consigned 48 computer units, costing P 8,000 each, to Jennie, Inc. The units were to be sold on either cash or credit basis at a commission of 15% of net sales. Lalisa paid freight of P 1,800 on the shipment. On November 11, Jennie received the goods. Sales were made as follows: · October 15 – 10 units for cash at P 13,000 each · October 28 – 12 units on account at P 14,000 each On October 31, 2024, collections on accounts amounted to P 95,000, and an allowance of P 2,000 was given to a charge customer for a defective unit. On November 15, 2024, Jennie made the proper remittance of cash received from customers. Required: 1. Determine the amount of remittance 2. Determine the consignment profit 3. Determine the cost of ending inventory on consignment
ABC Corp. consigned ten bags to DEF Company. These bags had a cost of P10,800 each. Freight on the shipments amounting to P7,200 was paid by ABC Corp. DEF submitted an account sales stating that it has sold six bags and remitted cash amounting P81,900 to ABC Corp. after deducting the following: Commission expense Selling expenses Delivery and installation of items sold Cartage cost upon receipt of consigned goods 10% of selling price 5,400 3,600 900 Requirements: Compute the following: 1. The total consignment sales 2. The commission earned on the sale of the six bags 3. The consignor net profit
On July 2, 2022, Honesty Co. consigned 3,200 books costing P60 and retailing for P100 each to Integrity Co. Freight cost paid by Honesty Co. amounted to P3,200. On September 30, 2021, Honesty Co. received from Integrity Co. the amount of ₱127,620 in full settlement of the balance due. The consignee deducted a commission of ₱20 for each book sold, ₱180 for delivery expenses and ₱200 for advertising expense.How many books were actually sold by Integrity Co.? (No peso sign on the answer)
The excel merchandising purchased merchandise costing 250,000.00 for the current month. It paid 10,000.00 for freight for the shipment the goods froms the seller to its store.
On October 20, 2021, ABC Co. consigned 40 freezers in Holden Co. for sale P1,000 each and paid P800 in transportation costs. On December 30, 2021, Holden reported the sale of 10 freezers and remitted P8,500. The remittance was net of the agreed 15% commission. What amount should ABC recognize as consignment sales revenue for 2021? [A] 7,700 [B] 8,500 [C] 9,800 [D] 10,000
For items 9 and 10. An SME sell goods in exchange for a P340,000 note receivable in two years’ time.The cash sale price of the goods is P280,992. The gross profit rate based on cost on the transaction is30%. Other operating expenses amounted to P50,000. 9. How much is the sale revenue recognized by the SME?a. P340,000 b. P280,992 c. P64,844 d. P334,156 10. How much is the profit or loss of the SME?a. P14,844 b. P(14,844) c. P46,988 d. P42,944
Show the solution in good accounting form
The Yakusa Co. sells P40,000 of accounts receivable to a factor and receives 94% of the value of the factored accounts less a 10% commission based on gross amount of factored accounts receivable. After the journal entry to record this factoring transaction is made, Yakusa’s total assets will be: a. Reduced by P2,400 b. Increased by P4,000 c. Reduced by P4,000 d. Increased by P33,600
ABC Company factored ₱3,500,000 of accounts receivable with a finance company. The factoring fee was3% of the accounts purchased. The finance company withheld 10% of the purchase price to cover salesdiscounts, returns and allowances.1. What amount of cash was received on the factoring of accounts receivable?2. What amount should be recognized as loss on factoring?
CRManufacturing Co. consigned to CE Trading Corp. twelve (12) Sony colored TV sets which cost P9,000 each. Freight out was paid by the consignor in the amount of P600. CE Trading sold eight (8) sets, rendered an account sales, and remitted the amount of PS2,600 after deducting the following from the selling price of the sets sold: Commission on selling price Selling expenses Cost of antennae given free Delivery and installation 12% 1,200 1,400 2,800 The total selling price of the eight (8) sets sold by CE Trading Corp. is
Bataan Company, a VAT-registered business, purchased imported goods from Finland Company with the following related information: List price (Terms: 20%; 2/10, n/30), P 300,000 Shipping cost to acquire the inventory, P 15,000 Special handling charges, P 8,000 Purchase returns, P 3,000 Bataan Company paid 100% custom duty taxes based on the invoice cost, its directly related incidental costs and the related VAT based on the total invoice cost plus incidental costs and custom duty taxes. QUESTION: What is the cost of inventory?
Jennie Company assigned on a notification basis P4,000,000 of accounts receivable to a finance entity as security for a loan of P3,500,000. The finance entity charged a 6% commission on the amount of loan and interest on the note of 10%. During the first month, the finance entity collected P1,200,000 on the assigned accounts after deducting sales discounts of P150,000. The finance entity accepted sales returns worth P100,000 and wrote assigned accounts totaling P50,000. What is the amount of cash received from the finance entity at the time of the transfer?