ABC Co. delivered 150 portable gas stoves to DEF Co. on consignment. These stoves cost P2,700 each and could be sol for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignmen contract stated that ABC Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompant the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered at Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Deliver Expense P3,375 and Commission P10,135. How much is the amount remitted by DEF to ABC for the first month?

ABC Co. delivered 150 portable gas stoves to DEF Co. on consignment. These stoves cost P2,700 each and could be sol for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignmen contract stated that ABC Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompant the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered at Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Deliver Expense P3,375 and Commission P10,135. How much is the amount remitted by DEF to ABC for the first month?

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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