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G COMPANY enters into a consignment arrangement with SM Company Under the arrangement, YG COMPANY transfers goods to SM Company which SM Company undertakes to sell on behalf of YG COMPANY In exchange, SM Company is entitled to a 20% commission based on sales. The following are the transactions: April 1- SMCompany accepts delivery of consigned goods with total sales value of P 390,000. The costs of those goods to YG COMPANY is P 220,000. April 3 - SM Company sells consigned goo

G COMPANY enters into a consignment arrangement with SM Company Under the arrangement, YG COMPANY transfers goods to SM Company which SM Company undertakes to sell on behalf of YG COMPANY In exchange, SM Company is entitled to a 20% commission based on sales. The following are the transactions: April 1- SMCompany accepts delivery of consigned goods with total sales value of P 390,000. The costs of those goods to YG COMPANY is P 220,000. April 3 - SM Company sells consigned goo

FINANCIAL ACCOUNTING
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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YG COMPANY enters into a consignment arrangement with SM Company Under the arrangement, YG COMPANY transfers goods to SM Company which SM Company undertakes to sell on behalf of YG COMPANY In exchange, SM Company is entitled to a 20% commission based on sales. The following are the transactions: April 1- SMCompany accepts delivery of consigned goods with total sales value of P 390,000. The costs of those goods to YG COMPANY is P 220,000. April 3 - SM Company sells consigned goods costing P 55,000 for P 100,000. YG COMPANY. is not notified of the sale. April 7 - SM Company makes the weekly remittance of sale proceeds, net of commission, to YG COMPANY Prepare the journal entry on April 1 on the books of YG COMPANY.
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