ABC Corp. consigned ten bags to DEF Company. These bags had a cost of P10,800 each. Freight on theshipments 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 ABCCorp. after deducting the following:Commission expenseSelling expensesDelivery and installation of items soldCartage cost upon receipt of consigned goods10% of selling price5,4003,600900Requirements: Compute the following:1. The total consignment sales2. The commission earned on the sale of the six bags3. The consignor net profit

Freight cost per bag = total freight cost / no. of bags = 7200/10 = P720

Answered: ABC Corp. consigned ten bags to DEF…

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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8
Darmstadt Company sold merchandise for which it received total cash payments of $2,632,200. A 7% sales tax was included in the total cash payments. The proper amount to record as sales would be: A) $2,460,000 B) $2,568,168 C) $2,447,946 D) $2,736,000

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