ABC Co., consigned 5 dozen of stainless chairs to DEF Co.on April 1. 2021. Each chair cost P120 and the consignor paidP600 for the shipment to the consignee. On August 15, 2021,36 chairs were already sold and the consignee rendered anaccount sale, and remitted the balance due the consignor inthe amount of P5,580 after deducting the following:Commission at 15% of the selling priceSelling expensesDelivery and installation.P360180Compute for the cost of inventory on consignment in thehand of DEF Co.

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ABC Co., consigned 5 dozen of stainless chairs to DEF Co on April 1. 2021. Each chair cost P120 and the consignor pai P600 for the shipment to the consignee. On August 15, 2021 36 chairs were already sold and the consignee rendered a account sale, and remitted the balance due the consignor i the amount of P5,580 after deducting the following: Commission at 15% of the selling price Selling expenses Delivery and installation P360 180 Compute for the cost of inventory on consignment in the hand of DEF Co.

ABC Co., consigned 5 dozen of stainless chairs to DEF Co on April 1. 2021. Each chair cost P120 and the consignor pai P600 for the shipment to the consignee. On August 15, 2021 36 chairs were already sold and the consignee rendered a account sale, and remitted the balance due the consignor i the amount of P5,580 after deducting the following: Commission at 15% of the selling price Selling expenses Delivery and installation P360 180 Compute for the cost of inventory on consignment in the hand of DEF Co.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

ABC Co., consigned 5 dozen of stainless chairs to DEF Co.
on April 1. 2021. Each chair cost P120 and the consignor paid
P600 for the shipment to the consignee. On August 15, 2021,
36 chairs were already sold and the consignee rendered an
account sale, and remitted the balance due the consignor in
the amount of P5,580 after deducting the following:
Commission at 15% of the selling price
Selling expenses
Delivery and installation.
P360
180
Compute for the cost of inventory on consignment in the
hand of DEF Co.

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